Aave active loans hit record $30.5B, commanding 65% of DeFi lending market
Aave reached $30.5 billion in active loans on Sept. 18, representing 65% of the $46.72 billion in whole active loans throughout decentralized protocols.
Data from Token Terminal exhibits that the lending protocol maintains a comfortable lead over opponents. Its nearest rival, Morpho, holds lower than $5 billion in active loans.
Aave additionally instructions a complete worth locked (TVL) of $42 billion, making it the biggest DeFi protocol by TVL, based mostly on DefiLlama data.
The deposit figures would place Aave because the 53rd largest US commercial bank if it operated underneath conventional banking constructions, inserting it among the many high 2.5% of US business banks based mostly on June 30 regulatory knowledge.
Aave working scorching
The protocol generated $24.6 million in fees over the previous seven days, rating it fifth-largest crypto protocol when contemplating centralized stablecoin issuers Tether and Circle.
Among purely decentralized protocols, Aave ranks third in weekly charge era, solely lagging behind Pump.fun and Uniswap.
Users entry Aave for a number of functions past fundamental lending. The protocol serves as a liquidity supply for merchants in search of leverage, as they make the most of belongings from their holding positions to borrow extra capital.
By utilizing holdings to accumulate extra liquidity, merchants leverage their positions absolutely on-chain. Additionally, holders search yield on their dormant belongings, and traders pursue larger returns than conventional finance presents.
Yield benefit
Yield benefits over conventional banking entice important capital to the protocol. Aaverank shows USDC deposits on Base earn 5.76% APY by means of Aave, considerably exceeding the 0.39% common supplied by FDIC-insured banks.
Similar premiums exist throughout networks and stablecoins, with Ethereum USDC yielding 5.12% and Avalanche USDC offering 5.03% returns.
At the identical time, USDT on Ethereum generates 5.09% by means of Aave in comparison with conventional financial institution averages, whereas various networks like Linea supply 3.94% on USDT deposits. These charges constantly outperform standard banking merchandise whereas sustaining on-chain accessibility.
The progress in active loans signifies how crypto traders are extra inclined to make use of decentralized protocols for leverage and yield, with Aave having a significant participation on this sector.
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