Ethereum lending protocol Aave recently surpassed $38.3 billion in net deposits, surpassing not only the 2021 bull market high, but also the all-time high. This reflects the need for leverage with large amounts of money, which could indicate that users are optimistic about future market prospects, or are motivated by other attractions, such as high returns. If the market rebounds further in the future, these deposit funds are expected to become the basis for borrowing, further fueling market activity. (Summary: Aave Blows Up 1.3 Billion Magnesium “Polygon Pull Chain” Crisis, Polygon Founder Says: Monopolies Are Not in Line with the Spirit of Web3) (Background Appendix: Ethereum Stacking Permanently Declining Income? Aave Integrates Chainlink SVR or Rewrites DeFi Pattern Since Trump’s Election, Investors Have Expected a Friendly Regulatory Environment to Be Able to Achieve Friendly Regulatory Environment Favorite Information Decentralized Finance and the Trump Family Project World Freedom Global Financial 7th Central Ethereum Environment Centralized Finance Coin, Adds Confidence in Ethereum DeFi. Aave’s Net Deposits Surpass $38.3B for the First Time Token Terminal Data Shows Ethereum Lending Leading Protocol Aave’s Net Deposits Hit $38.379B for the First Time Recently, Surpassing the Level of About $30B During the 2021 Bull City Period and Recording an All-Time High for Borrowing.Among them, Aave and Lido have a combined net deposit of $68.549 billion, accounting for nearly half of the total $144.897 billion of the top 20 DApps, or 47.3%. Ethereum Gas Fees Rise Above 53 Gwei We know that Aave is over-collateralized, so the high net deposit amount reflects the leverage requirement of a large sum of money, which could indicate that users are optimistic about future prospects, or are motivated by other attractions such as high returns.
If the market rebounds further in the future, these deposit funds are expected to become the basis for borrowing, further fueling market activity. Additionally, Etherscan data shows that gas fees have risen to 53.183 Gwei, further highlighting the surge in on-chain activity. Additionally, the record high net deposits also demonstrate Aave’s growing appeal and trust as a lending protocol, with the potential to attract more participation from traditional financial institutions. “TradFi (TradFi) participants will drive the total crypto asset market cap from the current $3.5 trillion to over $100 trillion,” Artemis founder John Ma recently tweeted. According to DeFi data Lama, DeFi TVL (total locked up) has surged 130% this year to $125.3 billion, briefly hitting a new high of $140.9 billion on December 17. TVL Aave DeFi and the Polygon Controversy Additionally, Aave’s proposed withdrawal from Polygon has recently sparked heated discussions. The incident stemmed from the Polygon community’s “Polygon PoS Cross-Chain Interaction Project,” which proposed to deploy nearly $1.3 billion in stablecoin reserves on the Polygon PoS chain bridge for decentralized finance protocols, such as Morpho and Yearn, to generate profits. However, Mark Zeller, founder of ACI, a team of contributors to Aave, expressed concern that the move could increase the security risks of cross-chain interaction, especially considering that cross-chain interaction bridge weaknesses have led to significant losses in the DeFi ecosystem in the past.Therefore, Zeller suggested that Aave should withdraw from Polygon to protect the protocol from potential risks. In response, Polygon Labs CEO Marc Boiron argued that Aave’s actions were intended to suppress DeFi competitors and questioned its anti-competitive behavior. The incident sparked a wide-ranging debate in the community about whether Aave’s move was motivated by security concerns for the protocol or to suppress competitors. Because if Polygon chose to deploy to Aave, would it continue to do so? Further reading: Aave’s 1.3 billion magnesium triggered the “polygon pull chain” crisis, Polygon founder choked up: engaging in monopoly is not in line with the spirit of web3 Related reports AAVE coin price surges to new highs? Chainlink revenue expected to increase by tens of thousands of dollars annually Aave and Lido’s total TVL first exceeds $70 billion, DeFi takes over half of the world Trump family then increases DeFi center! Buy ONDO, AAVE, ENACoin, Breaks 8K Mg Position ($38.3B Net Deposit Breaks New High, Ethereum Gas Fee Soars to 53Gwei, DeFi Outbreak Imminent? This article was first published in BlockTempo "Dynamic Trend - Most Influential News Media". $AAVE