Aave reached $30.5 billion in lively loans on Sept. 18, representing 65% of the $46.72 billion in complete lively loans throughout decentralized protocols.
Information from Token Terminal reveals that the lending protocol maintains a comfortable lead over rivals. Its nearest rival, Morpho, holds lower than $5 billion in lively loans.
Aave additionally instructions a complete worth locked (TVL) of $42 billion, making it the most important 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 beneath conventional banking constructions, inserting it among the many prime 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.
Amongst purely decentralized protocols, Aave ranks third in weekly charge technology, solely lagging behind Pump.fun and Uniswap.
Customers entry Aave for a number of functions past fundamental lending. The protocol serves as a liquidity supply for merchants looking for leverage, as they make the most of property from their holding positions to borrow further capital.
Through the use of holdings to amass extra liquidity, merchants leverage their positions absolutely on-chain. Moreover, holders search yield on their dormant property, and buyers pursue larger returns than conventional finance gives.
Yield benefit
Yield benefits over conventional banking entice vital 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.
Related premiums exist throughout networks and stablecoins, with Ethereum USDC yielding 5.12% and Avalanche USDC offering 5.03% returns.
On 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 persistently outperform standard banking merchandise whereas sustaining on-chain accessibility.
The expansion in lively loans signifies how crypto buyers are extra inclined to make use of decentralized protocols for leverage and yield, with Aave having a significant participation on this sector.