#OnChainLendingSurge The historical borrowing volume reflects the varying nature of leverage within the DeFi market, with periods of increased borrowing corresponding with bullish market sentiment, and vice versa

The initial growth phase coincided with the launch of the COMP liquidity mining campaign in June 2020.

The correlation underscores the impact that token incentive programs can have on market adoption and growth. However, the chart also highlights the sustainability challenges of such programs, as evidenced by the subsequent contraction from the peak in 2021.

Outstanding borrows peaked at $23 billion in December 2021, and bottomed at $3.6 billion in January 2023. The subsequent recovery to $8.3 billion illustrates the market's resilience and potential for future growth.

The integration of real-world assets (RWAs) as collateral, in addition to crypto-native assets, represents a significant opportunity for market expansion.