Leading decentralized finance (DeFi) platform Aave has reached a significant milestone, reaching $35 billion in total net deposits. This is Aave's (ATH) new high in net deposits since 2021.
Aave Hits $35 Billion in Net Deposits – What's Next?
in one announcement It was made yesterday leading DeFi lending protocol Aave has revealed that it has reached a new ATH in net deposits since 2021. With $35 billion in net deposits, Aave has solidified its position as the largest DeFi protocol at the time of writing.
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To put this into perspective, Aave's net deposits were $5.5 billion at the end of 2022, rising to $10 billion by the end of 2023. The current figure of $35 billion at the end of 2024 represents a staggering increase of over 535% in just two cases. year
2024 was transformative for Aave with the protocol experience has increased User adoption on multiple blockchains During the year, Aave added support for five new markets, including BNB Chain, Scroll, ZKsync Era, and Ether.fi.
According to the announcement, Aave is poised to further expand with the possible addition of support for six additional blockchains. These include Mantle, Sonic, Linea, BOB, Spider Chain, and Aptos, which are awaiting approval from the Aave Decentralized Independent Organization (DAO).
For the uninitiated, a DAO is a blockchain-based entity governed by smart contracts and decentralized voting, where decisions are made collectively by token holders without any central authority. DAOs enable transparent and democratic management of protocols in a trustless environment.
In addition to expanding into new blockchain markets, Aave launched its latest protocol upgrade, Aave V4. This upgrade offers significant improvements, such as increased modularity, reduced governance overhead, optimized capital efficiency, and innovative features such as Hub and Spoke liquidity architecture.
Additionally, Aave's decentralized and over-collateralized stablecoin GHO will see increased adoption. Plans are underway to expand its cross-chain support to various smart contract platforms, including Coinbase's Base and Avalanche (AVAX), by early 2025.
Will DeFi Come Back in 2025?
After Donald Trump won the November 2024 US presidential election, DeFi tokens took off with experience A significant increase due to optimism surrounding the favorable regulation of digital currencies under the new government.
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In addition, DeFi protocols have become increasingly secure, increasing user trust, leading to higher deposit volumes and greater Total Value Locked (TVL). recent report It highlighted that DeFi exploits were down 40% in 2024 compared to 2023, indicating improved security across the ecosystem.
Furthermore, it is Q1 2025 It is expected It's bullish for Ethereum (ETH), the second largest cryptocurrency by market cap, and home to the largest DeFi ecosystem. A positive price action for ETH is expected to benefit major DeFi tokens such as AAVE, Curve (CRV), Compound (COMP), etc.
That said, the Solana (SOL) DeFi ecosystem is developing rapidly to obtain Ethereum's traction and reach in terms of adoption. This development could propel Solana-based DeFi tokens such as Orca (ORCA) and Raydium (RAY) to new heights. At press time, ETH is trading at $3,461, up 4% over the past 24 hours.
Featured image from Unsplash, chart from Tradingview.com
