On-chain data reveals an interesting phenomenon— a leading lending protocol's ETH deposits on the Ethereum network have reached a new all-time high. Jumping from 3 million to 4 million in volume, this growth rate is quite indicative.

The underlying logic is actually a positive feedback loop: users deposit more ETH → protocol revenue becomes more robust → protocol attractiveness increases → attracting more users to participate. Once this cycle starts, it can create a strong competitive barrier.

Looking at market position makes it clear. This protocol alone controls about 59% of the DeFi lending market share, with active loans exceeding 60% of the entire sector. In other words, the main part of on-chain lending business is indeed centered here.

Looking ahead, the industry is generally optimistic about the recovery of the DeFi market by 2026. If this expectation materializes, as a leading participant in on-chain lending infrastructure, this protocol's market position will be further strengthened. Of course, the specific approach still depends on one's risk tolerance and investment strategy.