DeFi Lending Platforms Face Decline Amid Market Volatility

According to PANews, recent fluctuations in the cryptocurrency market have significantly impacted the lending volumes of DeFi platforms Aave and Morpho. Data reveals that the average lending yield based on USD stablecoins has dropped to 2.8%, marking a one-year low and a sharp decline from the December high of 18% last year. Over the weekend, the prices of Bitcoin and Ethereum fell below $75,000 and $1,500, respectively, leading to the liquidation of several leveraged positions. Aave alone processed over $110 million in liquidations. This heightened market risk sentiment has resulted in a continued decrease in lending demand.