The Federal Reserve's recent interest rate cut is set to significantly impact the structure of on-chain lending, though it may not directly boost the cryptocurrency market. As traditional yields decline, investors are increasingly turning to decentralized finance (DeFi) platforms like Aave, temporarily driving up on-chain interest rates. In the long term, however, the overall cost of borrowing is expected to decrease, leading to a reduction in on-chain rates as well. This rate cut is gradually reshaping the DeFi lending ecosystem by narrowing interest rate spreads and lowering yields.