DeFi lending is gaining momentum, reaching the activity levels of 2021, as borrowers show confidence in a maturing market.
Growth in DeFi Lending
DeFi lending is emerging as a leading sector in 2024. Although the overall DeFi total value locked is still below the 2021 level, on-chain loans are equally active. Amid market changes, such as questions about Bitcoin's cycle peak, lending has become more conservative, considering the value of collaterals.
Increase in Stablecoin Share
The stable growth of stablecoin supply aids DeFi lending growth, potentially supporting DEX swaps and other activities. At the same time, the use of stablecoins reduces the risk of market loss contagion.
Aave Leading the Charge
Aave is the leader among lending protocols, maintaining significant levels of active loans and locked value. The project develops a lending pool model and issues its own stablecoin, GHO. Currently, Aave's active loans exceed $22 billion.
The current situation with on-chain loans in DeFi shows stable growth, based on market maturity. Protocols like Aave continue to attract significant funds, developing infrastructure and offerings.
