Aave active loans hit record $30.5B, commanding 65% of DeFi lending market

Aave reached $30.5 cardinal successful progressive loans connected Sept. 18, representing 65% of the $46.72 cardinal successful full progressive loans crossed decentralized protocols.

Data from Token Terminal shows that the lending protocol maintains a comfy lead implicit competitors. Its nearest rival, Morpho, holds little than $5 cardinal successful progressive loans.

Aave besides commands a full worth locked (TVL) of $42 billion, making it the largest DeFi protocol by TVL, based connected DefiLlama data.

The deposit figures would presumption Aave arsenic the 53rd largest US commercialized bank if it operated nether accepted banking structures, placing it among the apical 2.5% of US commercialized banks based connected June 30 regulatory data.

Aave moving hot

The protocol generated $24.6 cardinal successful fees implicit the past 7 days, ranking it fifth-largest crypto protocol erstwhile considering centralized stablecoin issuers Tether and Circle.

Among purely decentralized protocols, Aave ranks 3rd successful play interest generation, lone lagging behind Pump.fun and Uniswap.

Users entree Aave for aggregate purposes beyond basal lending. The protocol serves arsenic a liquidity root for traders seeking leverage, arsenic they utilize assets from their holding positions to get further capital.

By utilizing holdings to get much liquidity, traders leverage their positions afloat on-chain. Additionally, holders question output connected their dormant assets, and investors prosecute higher returns than accepted concern offers.

Yield advantage

Yield advantages implicit accepted banking pull important superior to the protocol. Aaverank shows USDC deposits connected Base gain 5.76% APY done Aave, substantially exceeding the 0.39% mean offered by FDIC-insured banks.

Similar premiums beryllium crossed networks and stablecoins, with Ethereum USDC yielding 5.12% and Avalanche USDC providing 5.03% returns.

At the aforesaid time, USDT connected Ethereum generates 5.09% done Aave compared to accepted slope averages, portion alternate networks similar Linea connection 3.94% connected USDT deposits. These rates consistently outperform accepted banking products portion maintaining on-chain accessibility.

The maturation successful progressive loans indicates however crypto investors are much inclined to usage decentralized protocols for leverage and yield, with Aave having a significant participation successful this sector.

The station Aave progressive loans deed grounds $30.5B, commanding 65% of DeFi lending market appeared archetypal connected CryptoSlate.