Deposit Boom in DeFi
Aave, the largest decentralized finance (DeFi) protocol today, has just recorded a historic milestone with $31.4 billion in net deposits on Sunday. In the past month, cryptocurrency users have contributed an additional approximately $10.4 billion, a strong increase of 50% compared to the figure of $20.9 billion at the beginning of November.
This stellar growth puts $AAVE ahead of many major commercial banks in the US, such as Commerce Bank and BNY, when compared to the consolidated asset data of insured banks as of September 30 from the Federal Reserve.
The price of the AAVE token has also surged significantly
The price of the AAVE token, the native currency of the protocol, increased by 14% in just the last 24 hours, reaching $234, the highest in over two years (since April 2022). In the past 30 days, the price of AAVE has risen by 69%, pushing the market capitalization of this token to nearly $3.5 billion.
The price increase is partly due to the Aave community considering changes to tokenomics, allowing AAVE holders to receive rewards from the protocol's revenue. This proposal is in the detailed feedback collection phase and is expected to be brought to an on-chain vote in the near future.
Outstanding growth compared to other platforms
Marc Zeller, founder of Aave Chan Initiative, shared on social media that Aave's growth rate this quarter (from $18 billion to $31 billion) is equivalent to the total scale of all other DeFi lending protocols combined. Stani Kulechov, the founder of Aave, also remarked: 'Aave is growing faster than ever.'
Aave not only asserts its leading position in the DeFi sector but is also getting closer to competing with traditional financial institutions.