Aave Weekly Borrowers Reach New All-time High
15 Aug, 2024 ● Coin news
Decentralized finance (DeFi) protocols are showing signs of recovery, with the lending and borrowing platform Aave reaching a new milestone in weekly active borrowers.
On Aug. 14, Aave founder Stani Kulechov announced in a post on X that the protocol had reached approximately 40,000 active weekly borrowers, surpassing the previous record set in late 2022.
This growth has been fueled by the rise of new lending markets like Base and Scroll.
According to Dune analytics, Base now accounts for nearly 30% of all unique wallets on Aave V3.
Layer-2 platforms Arbitrum and Polygon follow, holding 23.4% and 21% of Aave's wallet share, respectively.
Kulechov also highlighted that the number of weekly depositors on the platform is nearing peak levels, with Dune analytics data showing a spike in Aave depositors earlier this month.
Aave operates as a decentralized platform across 12 blockchains, specializing in overcollateralized loans.
Users can deposit cryptocurrency to take out loans, with the process automated through smart contracts that manage fund distribution, collateral, and fees according to preset rules.
According to DeFiLlama, Aave is the third-largest DeFi protocol by total value locked (TVL), with a reported TVL of $11.85 billion.
While the protocol's TVL has grown by 70% this year, it remains below its peak of around $20 billion in October 2021.
There is a growing sentiment within the crypto community that DeFi is experiencing a resurgence as protocols begin to recover.
Arthur Cheong, founder of Defiance Capital, commented on Aave's growth on X, noting, “The mismatch between growth and valuation is where you get the best R/R for investing.”
In early August, Cointelegraph reported that DeFi active loans had returned to levels not seen since early 2022, reaching approximately $13.3 billion.
Additionally, the overall DeFi ecosystem's TVL has increased by 40% this year to reach $90 billion, though it has recently been impacted by market corrections.
Sources:
https://cointelegraph.com/news/defi-rises-again-as-aave-hits-new-ath-in-weekly-borrowers
https://dune.com/KARTOD/AAVE-Mega-Dashboard
