#OnChainLendingSurge

OnchainLending

On-chain lending has been on a tear lately, with record-breaking highs in lending volume. The total value locked (TVL) across all chains has hit an all-time high, with over $247 billion locked in smart contracts. This surge in on-chain lending is largely driven by the growth of decentralized finance (DeFi) protocols, which offer users the ability to lend and borrow cryptocurrencies in a trustless and permissionless manner.

One of the key drivers of this growth is the increasing adoption of on-chain lending platforms, such as Aave and Compound. These platforms have made it easier for users to access credit and lending services, and have helped to increase the overall liquidity of the DeFi market.

Another factor contributing to the growth of on-chain lending is the rise of non-fungible token (NFT) lending. Platforms like Blend and NFTfi have made it possible for users to borrow against their NFTs, providing a new source of liquidity for the market. In fact, the NFT lending market has recently surged to record-breaking highs, with over $197 million in lending volume in a single week.

However, it's worth noting that the on-chain lending market is not without its risks. The market is still relatively unregulated, and there have been instances of lending platforms experiencing liquidity crises and smart contract vulnerabilities. As such, users should exercise caution when participating in on-chain lending, and make sure to do their research and understand the risks involved .