#OnChainLendingSurge On-chain lending has been experiencing significant growth, driven by increasing demand for decentralized finance (DeFi) services. The total value locked (TVL) in on-chain lending protocols has been rising, with platforms like Aave and Compound leading the charge ¹.

*Key Drivers of the On-Chain Lending Surge:*

- _Growing Demand for DeFi_: The DeFi market has been expanding rapidly, with more users seeking decentralized lending and borrowing options.

- _Improving Capital Efficiency_: Protocols like Morpho are optimizing capital utilization, allowing for more efficient lending and borrowing ¹.

- _Increasing Adoption of Real-World Assets (RWAs)_: The integration of RWAs as collateral is expanding the on-chain lending market, making it more attractive to institutional investors ¹.

*Notable On-Chain Lending Platforms:*

- _Aave_: A leading DeFi lending protocol with a significant market share

- _Compound_: Another prominent lending protocol that has experienced fluctuations in market share