Aave Is Dominating The DeFi Space as it Attracts More Users and Assets

Liquidity on the popular lending protocol has already reached its all-time high despite the price down 42.5% from the peak a fortnight back.


Popular DeFi lending protocol Aave is now dominating the decentralized finance space.

With more than $10 billion in total assets locked (TVL), Aave now accounts for 15.42% of the DeFi TVL market share, as per DeFi Pulse.

This TVL dropped from the height of $12.34 billion on May 15 to $6.8 billion at the beginning of last week. Now in just over a week, it has recovered nearly 50%.

In terms of assets, Aave has just over 1 million ETH, 38.5k BTC, and 265.58 DAI — all very close to their ATHs. ETH -4.15% Ethereum / USD ETHUSD $ 1,899.60
-$78.83-4.15%
Volume 21.12 b Change -$78.83 Open $1,899.60 Circulating 121.97 m Market Cap 231.7 b
7 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 7 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 7 mon The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022
BTC -1.69% Bitcoin / USD BTCUSD $ 24,094.92
-$407.20-1.69%
Volume 33.24 b Change -$407.20 Open $24,094.92 Circulating 19.12 m Market Cap 460.75 b
7 mon SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy 7 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 7 mon Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum

Interestingly, in terms of TVL, other lending protocols are also the ones capturing 2nd and 4th spot, with Maker (MKR) and Compound (COMP) having $8.9 billion and $7.5 billion, respectively. Sidechain project Polygon (MATIC), which has grown immensely this year, is currently in 3rd place with $7.55 billion in TVL. MKR -4.30% Maker / USD MKRUSD $ 1,009.63
-$43.41-4.30%
Volume 401.69 m Change -$43.41 Open $1,009.63 Circulating 977.63 K Market Cap 987.05 m
7 mon StarkWare Proposes to Deploy Aave on its ZK-Rollup L2 StarkNet 9 mon Big Week Ahead? Bitcoin Rallies Towards ATH, Ether Sets A New High, Crypto Marks Hits $3 Trillion 9 mon Grayscale Adds Avalanche (AVAX) and Terra (LUNA) to its Investment Product Consideration List
COMP 0.00% Compound Coin / USD COMPUSD $ 0.00
$0.000.00%
Volume 0 Change $0.00 Open $0.00 Circulating 53.73 b Market Cap 2.59 K
9 mon Australia's Largest Bank to Allow its 6.5 Million Users to Buy, Sell, & Hold 10 Cryptocurrencies via its App 10 mon Compound Bug Puts 490k COMP at Risk to Become the Largest Fund Loss in a Smart Contract Incident 10 mon Grayscale Makes Solana (SOL) the 4th Biggest Holding in its Digital Large Cap Fund, Adds Uniswap (UNI) too
MATIC -5.95% Polygon / USD MATICUSD $ 0.95
-$0.06-5.95%
Volume 560.08 m Change -$0.06 Open $0.95 Circulating 8.04 b Market Cap 7.66 b
7 mon StarkWare Proposes to Deploy Aave on its ZK-Rollup L2 StarkNet 7 mon The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 7 mon Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum

Aave is currently working on a private pool for institutions to ape into DeFi, as revealed by founder and CEO Stani Kulechov last month.

The liquidity in the protocol has also reached its ATH already $21.5 billion despite the prices down 42.5% from the peak of $662 a fortnight back, as per CoinGecko.

AAVE is currently trading at $396 with a market cap of $5.07 billion.

This “means it was achieved with more users, volume and assets deposits rather than just price fluctuations,” noted one Aave enthusiast.

USDC has the largest liquidity of all on Aave, followed by ETH, WBTC, and DAI.

Last week, the protocol generated $24.7 million with $6.5 million in interest, $307k from Flash Loan fees, $800k from liquidations, $5.9 million from Aave V2 distribution, and $10.4 million Polygon distribution with an additional $719k collected for the ecosystem.

This puts the protocol’s daily average at $3.5 million, per the protocol performance and protocol update.

Currently, Aave offers the highest APY on stablecoins; BUSD has the top APY of 8% for depositors, excluding liquidity mining, followed by DAI at 3.26% and GUSD at 3.17%.

Total outstanding debt on the protocol is currently at $5.54 billion, up from just $662 million at the beginning of the year.

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