Lend if you want more money while hodl but it has minimum risk, tho it is considered as a risk. and you need a person to use your money. Default on loans is still a thing and problems like this will never be going away. and most bitcoin lending would be on centralized exchange.
After the scam scandals in the industry last year involving big platforms of the lending crypto business, many investors have become afraid of this business model and retreated their investments back to personal hardware wallets where they can have total control over their funds. It may be less profitable, since no passive income will be generated, but it's guaranteed to not be 100% scammed, anyway.
I believe lending would be a great opportunity only if there were guarantees for investors in case the platform went bankrupt. Unfortunatelly what we see for real is that authorities stay by the side of the scammers and their lawyers, completely neglecting the side of investors.