The on-chain active loans in the DeFi space have reached levels not seen since the peak of the crypto market in 2021, indicating confidence from borrowers in the current bull market. DeFi lending has become one of the leading applications in 2024, with on-chain loans being as active as during the previous bull cycle. The market now shows a more mature and spread out market, with leading protocols being present on multiple chains. While the on-chain leverage is only similar to 2021 in nominal terms, protocols have taken a more conservative approach by using collateral-based loans and switching to more stable collateral options like T-Bills. Despite this, the current cycle only represents a smaller percentage of the available stablecoins, suggesting potential for even wider lending and increased activities in the DeFi space. The market for DeFi lending has recovered from previous crashes and Aave, a lending protocol, is leading in terms of active loans and value locked. The AAVE token, associated with Aave, is expected to rise in value and has seen a recent boost from whale activity. However, such lending practices also expose the loans to liquidation.



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