Aave's net deposits of $38.3 billion hit a new high, Ethereum Gas fees rise to 53 Gwei, is a DeFi explosion imminent?

The net deposits of the Ethereum lending protocol Aave recently surpassed $38.3 billion, not only exceeding the peak during the 2021 bull market but also reaching an all-time high. This reflects a significant demand for leveraged funds, which may indicate that users are optimistic about future market prospects or are driven by other attractions (such as high yields). If the market further warms up in the future, these deposit funds are expected to become the basis for borrowing, further driving market activity. (Background: Aave triggered a $1.3 billion 'Polygon withdrawal' crisis, Polygon's founder criticized: monopoly does not conform to the spirit of web3) (Background information: Is Ethereum staking income permanently declining? Aave integrates Chainlink SVR or rewrites the DeFi landscape) Since Trump was elected, investors have been expecting a friendly regulatory environment to benefit DeFi. After the Trump family project World Liberty Financial significantly increased its investment in Ethereum ecosystem DeFi tokens, it added confidence in Ethereum DeFi. Aave's net deposits first broke $38.3 billion. Data from Token Terminal shows that the net deposits of Ethereum lending protocol leader Aave have recently reached $38.379 billion for the first time, exceeding the approximately $30 billion level during the 2021 bull market, and setting a historical high for lending protocols. Among them, the combined net deposits of Aave and Lido amount to $68.549 billion, accounting for nearly half of the total of the top 20 decentralized applications at $144.897 billion, reaching as high as 47.3%. Ethereum Gas fees surpassed 53 Gwei. We know that Aave adopts an over-collateralization model, so the rise in net deposits reflects a significant demand for leveraged funds, which may indicate that users are optimistic about future market prospects or are driven by other attractions (such as high yields). If the market further warms up in the future, these deposit funds are expected to become the basis for borrowing, further driving market activity. Additionally, data from Etherscan shows that Ethereum Gas fees have climbed to 53.183 Gwei, further highlighting the increase in on-chain activity. Furthermore, the record high net deposits also indicate that Aave, as a lending protocol, is enhancing its attractiveness and trustworthiness, and it may attract more participation from traditional financial institutions. Artemis founder Jon Ma recently tweeted a prediction: "Traditional finance (TradFi) participants will drive the total market value of crypto assets from the current $3.5 trillion to over $100 trillion." According to data from DeFiLlama, this year's DeFi TVL (Total Value Locked) has grown by 130%, reaching $125.3 billion, and at one point on December 17, it reached a new high of $140.9 billion. Aave and Polygon controversy. It is also worth mentioning that the recent proposal for Aave to withdraw from Polygon has sparked heated discussion. The incident originated from a preliminary proposal raised by the Polygon community regarding the "Polygon PoS Cross-chain Liquidity Plan," which suggested deploying about $1.3 billion in stablecoin reserves from the cross-chain bridge to DeFi protocols such as Morpho and Yearn to generate yields. However, Marc Zeller, founder of Aave contributor team ACI, expressed concerns about this, believing that this move could increase the security risks of the cross-chain bridge, especially considering that past cross-chain bridge vulnerabilities have led to significant losses in the DeFi ecosystem. Therefore, Zeller proposed that Aave withdraw from Polygon to protect the protocol from potential risks. In response, Marc Boiron, CEO of Polygon Labs, believes that Aave's actions imply a suppression of DeFi competitors and questions its anti-competitive behavior. This has sparked widespread community discussion, questioning whether Aave's actions are based on concerns for protocol security or intended to suppress competitors. If Polygon chooses to deploy to Aave, would it still take this action? Further reading: Aave triggers a $1.3 billion 'Polygon withdrawal' crisis, Polygon's founder criticizes: monopoly does not conform to the spirit of web3. Related reports: Will AAVE's price hit a new high again? Chainlink assistance is expected to generate tens of millions of dollars in annual revenue. Aave and Lido's total TVL first broke $70 billion, dominating half of the DeFi world. The Trump family increases investment in DeFi! Buying ONDO, AAVE, ENA tokens, with holdings exceeding $80 million. "Aave's net deposits of $38.3 billion hit a new high, Ethereum Gas fees rise to 53 Gwei, is a DeFi explosion imminent?" This article was first published by BlockTempo (the most influential blockchain news media).