#OnChainLendingSurge

This surge is attributed to several factors:

• Improved Borrowing Activity: The lending figures of DeFi have jumped and set a new all-time high while being fronted by both Ether.fi and Ethena. Their supply value has grown highly with Ether.f's eETH supply reaching $6.4 billion and Ethena's USDe rising to $3.2 billion. 

• Improved Capital Efficiency: On-chain lending has also been successful due to cross-chain functionality and improved capital efficiency, which have made it dominant in DeFi lending.



• Matured Market Dynamics: The on-chain lending market has matured. Leading protocols are expanding across multiple chains. This is accompanied by a more conservative approach, taking into consideration the value of collateral and the integration of stablecoins to hedge against risks related to market volatility.