The on-chain lending market is experiencing an unprecedented surge, with the total active loans surpassing $20 billion. This milestone, reported by Token Terminal, marks a significant increase from the previous record set in December 20211. Analysts attribute this growth to investors seeking higher yields offered by decentralized finance (DeFi) platforms, which often exceed those available in traditional finance. The rise in stablecoin market cap, now over $200 billion, also plays a crucial role as investors capitalize on elevated lending rates. Platforms like Aave and Compound are seeing annualized lending rates between 10-20%, attracting substantial capital inflows. This trend highlights the growing interest in DeFi and the potential for continued expansion in the blockchain ecosystem.
