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 5.51% Ethereum / USD ETHUSD $ 2,763.12
$152.255.51% Volume 26.23 b Change $152.25 Open $2,763.12 Circulating 116.13 m Market Cap 320.87 b
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$1,052.632.78% Volume 32.62 b Change $1,052.63 Open $37,864.39 Circulating 18.72 m Market Cap 709 b
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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 0.10% Maker / USD MKRUSD $ 3,656.30
$3.660.10% Volume 152.3 m Change $3.66 Open $3,656.30 Circulating 991.49 K Market Cap 3.63 b
10 s Aave Is Dominating The DeFi Space as it Attracts More Users and Assets 3 d EIP-1559 Delivers What it Promises, But it’s Not Solving Gas Fees Problem 1 w Will EIP-1559 Get Implemented on Ethereum by The End of July? COMP -14.72% Compound Coin / USD COMPUSD $ 0.00
$0.00-14.72% Volume 28.77 K Change $0.00 Open $0.00 Circulating 53.73 b Market Cap 24.97 K
10 s Aave Is Dominating The DeFi Space as it Attracts More Users and Assets 6 d Uniswap Community in Full Agreement to Deploy V3 on Ethereum Layer 2 Solution Arbitrum 2 w Coinbase Enables its Over A Million Wallet Users to Use DeFi — DEXs, NFTs, & More MATIC -1.27% Polygon / USD MATICUSD $ 1.84
-$0.02-1.27% Volume 1.72 b Change -$0.02 Open $1.84 Circulating 6.26 b Market Cap 11.52 b
10 s Aave Is Dominating The DeFi Space as it Attracts More Users and Assets 1 d Ethereum (ETH) Holders Grows by 8.16 Million, Despite the 60% Drawdown 1 d DEX Aggregator, 0x (ZRX), Expands to Multi-chain Scaling Solution Polygon (MATIC)

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

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.