Recent years have witnessed a significant surge in on-chain lending within the cryptocurrency market, reflecting evolving dynamics and trends in the sector. This growth is attributed to several factors, including increased investor confidence in cryptocurrencies as legitimate assets, greater participation from new entrants seeking diversification opportunities, and advancements in blockchain technology that enhance transparency and security for both lenders and borrowers alike. This shift marks a notable departure from previous lending cycles characterized by less stringent measures and heightened volatility. 2023 has witnessed a marked increase in the quality of collateral used in loans compared to past periods. A leading crypto lending firm suggests this is driven by investor emphasis on quality over quantity, signaling an increased focus on stability.