#OnChainLendingSurge

On-Chain Lending Explodes in 2024, Leading New DeFi Trends

The year 2024 witnesses major advancements in the crypto world, especially in the on-chain lending sector. With the total value locked (TVL*) in lending protocols soaring to $250 billion, this sector is becoming the backbone of the decentralized finance (DeFi) ecosystem.

Increased adoption of blockchain technology by large enterprises, regulatory stability in various countries, and the launch of more efficient cross-chain solutions have created an environment conducive to the growth of on-chain lending. Platforms such as Aave, Compound, and new ZK-rollup-based protocols are leading this change by offering low transaction fees, high security, and seamless global access.

One interesting trend this year is the emergence of the concept of real-world assets lending. Many protocols began connecting real-world assets, such as property and securities, to the blockchain, allowing users to utilize the value of those assets as collateral.

However, this rise has also sparked serious discussions about risks, ranging from asset volatility to the threat of automatic liquidation. Governments and regulators in various countries, such as the European Union and the United States, have begun to tighten oversight of on-chain lending activities to protect investors.