#OnChainLendingSurge
In 2025 is a great year for crypto currency market because it is a record breaking year at the beginning. PANews said that recent data from token terminal indicates the total active loans in Onchain lending market have reached an all time high, surpassing $20 billion . The previous record was on December 2021.
Crypto currency lending is a decentralised finance service that allow crypto currency holders to lend their crypto currency to borrowers that allow holders to earn interest on their crypto currency as market values fluctuate. Crypto currency lending is profitable but have risk of loss and theft.
WHAT IS ONCHAIN TRANSACTIONS???
Onchain transactions occur on a main blockchain. They have validated , recorded and agreed upon by blockchain network.
THE DIFFERENCE BETWEEN ONCHAIN AND OFFCHAIN TRANSACTIONS.
Onchain transactions occur directly on blockchains offering benefits like immutability , transparency and security but higher cost and slow speed are the disadvantages of it.
Off chain transactions happen outside blockchain. It sacrifice security and transparency and offer lower cost, faster processing and scalability.