Many people who have cryptocurrency do not want to sell their cryptocurrency because cryptocurrency market raise. That is why they take loans using collateral.
When the cryptocurrency market raises many people to prefer to hold their crypto assets and do not sell them.
That is why collateral in cryptocurrency is popular and is actively used in DeFi.
Passive income attracts many people. That is why a lot of people prefer to hold their assets to earn money on the raising market. But nobody knows how long to hold assets and how long the market will raise.