EddieJayonCrypto

 25 Dec 24

tl;dr

Aave and Lido have collectively surpassed $70 billion in net deposits, marking a significant milestone in the decentralized finance (DeFi) space. Aave leads with $34.3 billion in deposits, while Lido follows closely behind. In terms of total value locked (TVL), Lido holds the lead with $33.8 billion...

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Aave and Lido have collectively surpassed $70 billion in net deposits, marking a significant milestone in the decentralized finance (DeFi) space. Aave leads with $34.3 billion in deposits, while Lido follows closely behind. In terms of total value locked (TVL), Lido holds the lead with $33.8 billion, with Aave in second place at $20.6 billion. Both platforms are also among the top revenue-generating DeFi applications.

The overall DeFi ecosystem has seen remarkable growth, with the total TVL reaching $185 billion and decentralized exchanges experiencing record trading volumes. The lending market has also expanded, with active loans peaking at nearly $21 billion, indicating increasing comfort in using on-chain financial resources. Additionally, the stablecoin market size has grown to nearly $200 billion, fueled by users using their crypto holdings as collateral to borrow stablecoins.

Aave and Lido surpassed $70 billion in net deposits in December for the first time, according to data from TokenTerminal. As of press time, the two largest DeFi protocols hold a total $67.42 billion. Aave leads with $34.3 billion in deposits, just $1.1 billion higher than Lido’s. Regarding total value locked (TVL), Lido leads the DeFi ecosystem with $33.8 billion, with Aave coming in second with $20.6 billion. Net deposits represent the total deposited in a DeFi protocol, excluding fees and synthetic tokens, while TVL is the total allocated across all assets.

Moreover, Lido and Aave are among the top DeFi applications in revenue generation. Over the past 30 days, Aave’s revenue grew 27.5% to $12.5 million, making it the 10th largest protocol. Meanwhile, Lido registered $9.6 million in monthly revenue, fueled by a 24% growth rate, securing the spot of the 12th largest DeFi application by revenue.

The DeFi ecosystem has been registering a strong performance in 2024. The sector’s total TVL soared 107%, reaching $185 billion as of press time and peaking at $212 billion on Dec. 16. This is the first time the TVL has surpassed the $200 billion threshold.

The trading volume of decentralized exchanges reached new records on daily, weekly, and monthly timeframes. According to DefiLlama data, these protocols had a volume of nearly $380 billion in November. The growth in active loans also contributed to the stablecoin market size, which is close to $200 billion, as per Artemis data. Users apply their crypto holdings as collateral and borrow stablecoins, adding liquidity to their stashes and growing their crypto exposure.

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