DeFi rises again as Aave hits new ATH in weekly borrowers

Decentralized finance (DeFi) protocols are showing signs of resurgence, with Aave setting a new record for weekly active borrowers. On August 14, Aave founder Stani Kulechov announced that the platform has reached approximately 40,000 active weekly borrowers, surpassing the previous record set in late 2022.

This growth is largely attributed to the introduction of new lending markets like Base and Scroll. According to Dune Analytics, Base now accounts for nearly 30% of the total unique wallets on Aave V3, with Layer-2 platforms Arbitrum and Polygon following with shares of 23.4% and 21%, respectively.

Kulechov also noted that the number of weekly depositors on Aave is approaching peak levels. As of now, Aave, which operates across 12 chains and specializes in overcollateralized loans, holds a total value locked (TVL) of $11.85 billion, making it the third largest DeFi protocol. Despite a 70% increase in TVL this year, it remains below its peak of around $20 billion in October 2021.

The broader DeFi landscape is also experiencing a revival. Active loans have surged back to early 2022 levels, totaling about $13.3 billion. Additionally, the TVL for the overall DeFi ecosystem has risen 40% this year to reach $90 billion, though recent market corrections have caused some setbacks.

Defiance Capital founder Arthur Cheong highlighted the growth in Aave, suggesting that the current market conditions offer significant investment opportunities due to the disparity between growth and valuation.

source: https://cointelegraph.com/news/eigenlayer-restaking-platform-tvl-growth