The lending market appears to be heating up again, at least gradually. Although activity remains weak compared to the DeFi summer heat, both borrowings and repayments on major lending platforms appear to have increased. Ethereum ETH
+4.17%
.
Net borrowings as of May 7 were ghost 
ghost
+6.45%
It came out to $158.65 million. Net borrowing refers to the amount of loans minus repaid loans. So, if a platform’s daily net borrowing is negative, this means that more loans have been repaid than were originated that day.
For Aave, this is its largest net borrowing day in over a year. Over the past 12 months, net borrowings have been very modest, with occasional spikes. In the summer of 2023, it was more common to see a surge in repayments rather than a surge in loans, indicating that not many people were turning to the platform to get loans.
There have been some changes since the end of February. Over the past three months, there have been 36 days when net borrowings exceeded $20 million, which was much more unusual earlier this year. There were also multiple days of net redemptions in late April, which showed a steady increase compared to earlier in the year.
Aave appears to be leading the way in terms of loan revival: compound 
COMP
+6.03%
We didn’t see much net activity in either direction. However, Aave has become a much more dominant force in Ethereum lending, especially since the launch of Aave. Early last year v3.
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Unique borrowers on the Ethereum lending protocol have also been increasing over the past 12 months, but appear to have peaked in February. But still, more than 200 addresses were rented from Aave each day in May this year, compared to less than 100 addresses rented from Aave in May 2023.
To be fair, Ethereum’s DEX trading volume has increased in recent months, but remains low compared to its late-2021 highs, indicating a similar trend to lending.
One of the things that is putting a strain on the Ethereum DEX space is the presence of DEXs from other networks, such as: Solana 
brush
+8.02%
And Base is getting a lot of attention.
Lending to other chains is also popular, which may explain why Ethereum lending is still low compared to a few years ago despite the cryptocurrency turnaround. For example, JustLend tron 
TRX
+0.86%
actually The total value locked exceeds the compound. Both Aave and Compound have expanded their products to other networks.
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