On-Chain Speculation

Definition ∞ On-Chain Speculation involves trading activities and investment strategies executed directly on a blockchain network. This often utilizes decentralized exchanges or lending protocols. This type of speculation capitalizes on the transparency and immutability of the ledger. Participants aim to profit from price movements or yield generation within the decentralized ecosystem.
Context ∞ On-chain speculation is a significant driver of activity in decentralized finance (DeFi), contributing to both market liquidity and volatility. It frequently involves sophisticated strategies such as flash loans and complex yield farming. News often reports on the outcomes of these high-risk, high-reward activities and their impact on various digital assets.