Aave Hits Record $41.1B TVL, Rivals Top U.S. Banks

Aave, a leading decentralized lending platform, achieved a new milestone of hitting $41.1 billion in total value locked (TVL) on August ￰0￱ record makes Aave comparable in size to some of the biggest traditional banks in the United ￰1￱ signals a growing overlap between decentralized finance (DeFi) and the traditional financial ￰2￱ Climbs ￰3￱ Rankings According to the Federal Reserve’s recent data, Aave’s deposit base would position it as the 54th largest commercial ￰4￱ surpasses Prosperity Bank’s $38.4 billion and falls just $300 million short of Bank ￰5￱ of 2,156 commercial banks in the U. S., Aave’s position puts it in the top 2.5%. This is remarkable considering it is a decentralized protocol and not a traditional ￰6￱ protocol’s growth is not limited to ￰7￱ from DefiLlama shows that Aave held $28.9 billion in active loans as of August ￰8￱ this to the deposits results raises its combined figure to $71.1 ￰9￱ would elevate Aave to the scale of the 37th largest ￰10￱ in America, a ranking within the top 1.7% of the ￰11￱ report comes shortly after Aave launched on the Aptos blockchain , its first deployment on a non-EVM (Ethereum Virtual Machine) ￰12￱ Dominance in the DeFi Lending Market Aave has established itself as the market leader in the decentralized lending ￰13￱ now controls almost half of the entire DeFi lending market, which is valued at $81.5 ￰14￱ closest competitor, Morpho, manages nearly $7 billion, making Aave almost six times ￰15￱ dominance shows that the protocol has become the main backbone of decentralized lending ￰16￱ has also been setting new ￰17￱ August 13, it reported $29.1 billion in active loans, the highest so ￰18￱ two days later, on August 15, it crossed $3 trillion in total deposits processed since ￰19￱ numbers highlight Aave’s steady growth and strong demand in the lending ￰20￱ Sees Growth and Institutional Use The platform’s success is also reflected in its token, ￰21￱ April 8, the token has gained over 177%, rising from $114.05 to $316.74.

At the time of writing, it trades at $331.59, up 1.98% in the last 24 hours, according to CoinMarketCap ￰22￱ and crypto firm adoption has played a major role in this rise . Nasdaq-listed company BTCS now uses Aave to earn returns on its Ethereum (ETH) holdings. Similarly, Ethena’s USDe stablecoin and related assets worth $6.4 billion are deposited on the ￰23￱ size and adoption of the lending chain show that it is now used as a form of institutional-grade financial ￰24￱ it is not a traditional bank, Aave operates at a scale similar to some of the largest U. S.

banks.