On-chain lending has experienced a significant surge, driven by the rapid expansion of decentralized finance (DeFi). This growth reflects increased adoption of blockchain technology for borrowing and lending without intermediaries. Platforms like Aave, Compound, and MakerDAO enable users to access instant loans or earn interest by supplying assets. The rise in lending activity is fueled by factors such as improved liquidity, competitive interest rates, and transparency. Innovations like over-collateralization and flash loans attract both retail and institutional participants. As blockchain technology matures, on-chain lending continues reshaping traditional financial models, underscoring its role in the evolving global financial ecosystem.
