#OnChainLendingSurge

The “onchain lending surge” represents the growth in the use of decentralized lending platforms (DeFi), where financial transactions are carried out directly on the blockchain through smart contracts. This increase can be explained by several factors:

1. Growth of DeFi: Decentralized finance is attracting more and more users because it offers greater control over assets, eliminating intermediaries such as banks.

2. High Returns for Lenders: Compared to traditional financial institutions, DeFi platforms offer more attractive rates of return for those who make their cryptocurrencies available for lending.

3. Institutional Adoption: Large investors and financial institutions are entering the DeFi sector, increasing liquidity and trust in the system.

4. Stablecoins and Arbitrage: Fluctuations in the stablecoin market create arbitrage opportunities, encouraging a greater volume of lending and trading.

5. Technological Innovations: Constant improvements in platforms, such as support for new assets, greater security and efficiency, attract more users.