Decentralized Finance (DeFi) protocols are making progress in August 2024, led by the lending platform Aave.
Aave founder Stani Kulechov shared on Twitter on August 14 that Aave reached around 40,000 weekly active borrowers, breaking the old all-time high set in late 2022.
According to Dune Analytics, Base now accounts for nearly 30% of all active wallets on Aave V3. Layer-2 platforms Arbitrum and Polygon are second and third, with Aave’s borrower market share of 23.4% and 21% respectively.
Additionally, the number of depositors on Aave spiked partly due to the flash dump on August 5. Earlier on August 5, Stani Kulechov noted that the Aave Foundation generated $6 million in revenue overnight from liquidation activities.
According to data from DeFiLlama, Aave is the third-largest DeFi protocol in the crypto market today in terms of Total Value Locked (TVL).
As of August 15, Aave’s TVL reached $11.57 billion, an increase of more than 70% since the beginning of 2024. However, Aave’s TVL is still about 40% lower than its all-time high of about $20 billion in October 2021.
Arthur Cheong, the Founder of Defiance Capital, commented that Aave’s growth in 2024 is a signal that the DeFi summer is gradually returning.
As of August this year, loans on the DeFi network reached their highest level since the beginning of 2022, reaching nearly $13.3 billion. The TVL of the entire DeFi ecosystem has also increased by 40% this year and at one point surpassed $90 billion, before falling due to the impact of the market correction in early August.
Aave’s growth has contributed to the AAVE token recording outstanding performance compared to the general market. AAVE has increased by nearly 11% in the past 24 hours and is currently trading around $107.
