- Aave's dominance currently stands at 32.59%
- Aave’s dominance among lending platforms has been on a steady increase since December, when it was only 21.1%
2020 was a great year for DeFi platforms, which had it dubbed ‘The Year of DeFi.’ Many protocols gained popularity during the boom, and two years later, DeFi lending is still a big thing.
CryptoMonday.de has been following up on some of the most popular DeFi lending platforms. According to the reports, Aave is currently in the lead, with a 32.59% dominance over the entire market. Aave’s dominance has been on a steady increase since December, when it was only 21.1%
When asked to comment, Jonathan Merry, CEO at CryptoMonday had this to say, “DeFi lending platforms are increasingly becoming popular as more crypto enthusiasts get on board. Aave is certainly setting itself apart, after overtaking equally popular platforms like MakerDAO and Compound. It’ll be interesting to see how everything pans out.”
Aave‘s market cap goes over $2 billion
Further analysis of the reports by CryptoMonday indicate that Aave is the only DeFi lending platform whose market cap is above 2 billion, standing at $2.5 billion.
Aave’s dominance is quite clear, going by the gap between the first two platforms. MakerDao comes in second, with a $1.5 billion market cap, which is $1 billion less than Aave’s. Compound comes in third, closing the list of platforms past the $1 billion mark.
At the time of writing, Aave had the highest daily revenue among the three platforms, amounting to $542.4K. The borrowing and lending platform also has about $18 billion worth of crypto locked.
Aave has big plans for DeFi in the mainstream
Aave was launched in 2017, and since then, it has been expanding across the cryptoverse. The protocol is especially popular, thanks to its open-source nature that allows just about any developer to contribute to it. Aave’s founder, Stani Kulechov, says that DeFi is only getting started and that Aave is well on its way to bringing DeFi into the mainstream.
The DeFi lending protocol aims to achieve cross-chain interoperability. Aave was initially built on Ethereum, Avalanche, and Polygon. The protocol is looking to scale with the launch of its V3 protocol, which will have Aave live on seven other blockchains, including Fantom and Optimism.
Just recently, the platform launched Aave Arc, a service that allows large institutions to invest in DeFi. SEBA Bank and Fire Blocks are in charge of the funds custody, which is currently at about $30 million.
According to Stan, Aave will venture into other products to expand their reach into the mainstream, including fixed-income products and NFTs.