DeFi lending volume reached $40.99 billion in the third quarter, marking a $14.52 billion increase from the previous quarter, according to Galaxy Digital. This surge was primarily driven by airdrop farming, where users lend assets to earn free tokens. The overall market for crypto-collateralized loans also expanded significantly, rising by $20.46 billion to $73.59 billion.
Airdrop farming has gained popularity due to its low-risk entry and potential for high returns, although it has also led to challenges such as market saturation and short-term speculation. This trend highlights the growing interest and activity in the DeFi sector as users seek innovative ways to maximize their returns.
DeFi Lending Volume Soars to $41B in Q3, Boosted by Airdrop Farming
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