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 0.25% Ethereum / USD ETHUSD $ 2,397.15
$5.990.25% Volume 23.1 b Change $5.99 Open $2,397.15 Circulating 116.28 m Market Cap 278.73 b 3 h Yearn Finance TVL and Total Users Hits a New ATH Amidst Weak Price Action 1 d The May Crypto Sell-off Predominantly Occurred in the US Session 1 d Best Cryptocurrencies with Growth Potential to Buy In June BTC 4.26% Bitcoin / USD BTCUSD $ 37,038.44
$1,577.844.26% Volume 32.38 b Change $1,577.84 Open $37,038.44 Circulating 18.73 m Market Cap 693.87 b 3 h Yearn Finance TVL and Total Users Hits a New ATH Amidst Weak Price Action 1 d Bitcoin Taproot Upgrade Officially Locked in For November Activation 1 d Cryptocurrency Mining Bill Dies Down After New York Union 'Opposes'
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 1.40% Maker / USD MKRUSD $ 2,981.08
$41.741.40% Volume 81.76 m Change $41.74 Open $2,981.08 Circulating 991.42 K Market Cap 2.96 b 6 d Rates Fall Off a Cliff Suggesting Risk-Off Appetite, But Lending Protocols Leading DeFi 1 w Aave Is Dominating The DeFi Space as it Attracts More Users and Assets 2 w EIP-1559 Delivers What it Promises, But it’s Not Solving Gas Fees Problem COMP -6.93% Compound Coin / USD COMPUSD $ 0.00
$0.00-6.93% Volume 3.94 K Change $0.00 Open $0.00 Circulating 53.73 b Market Cap 29.76 K 6 d Rates Fall Off a Cliff Suggesting Risk-Off Appetite, But Lending Protocols Leading DeFi 1 w Aave Is Dominating The DeFi Space as it Attracts More Users and Assets 2 w Uniswap Community in Full Agreement to Deploy V3 on Ethereum Layer 2 Solution Arbitrum MATIC 7.94% Polygon / USD MATICUSD $ 1.37
$0.117.94% Volume 1.5 b Change $0.11 Open $1.37 Circulating 6.29 b Market Cap 8.6 b 2 d Polygon And 0x Team Up to Devote $10.5 Million Into Attracting New Users & Developers 5 d Layer-2 Scaling Solution Polygon Records Continued Growth, But May Not Bring Fees Down on Ethereum 1 w Bitwise Replaces ATOM with MATIC in Crypto Index; Okcoin Integrates Polygon for Cheaper & Faster DeFi Entry
Aave Pro for institutions pic.twitter.com/sUWOFDWcxd
— stani.eth 👻 =(⬤_⬤)= 👻 (@StaniKulechov) May 17, 2021
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.