Aave and Lido dominate DeFi with $70 Billion net deposits in December
The sectors total TVL has more than doubled
According to TokenTerminal, net deposits across the lending platform Aave and the liquid staking protocol Lido surpassed $70 billion for the first time in December.
As of December 24, the combined deposits for these two leading DeFi protocols had slightly decreased to $67.4 billion. Despite this decline, Aave and Lido accounted for 45.5% of the $148 billion allocated across the top 20 decentralized applications.
Aave leads with $34.3 billion in deposits, only $1.1 billion more than Lido. However, in terms of total value locked (TVL), Lido dominates the DeFi ecosystem with $33.8 billion, while Aave ranks second with $20.6 billion.
DeFi lending and trading set new records
This year, the DeFi ecosystem has shown remarkable growth. Since January, the sector’s total TVL has more than doubled, peaking at $212 billion on December 16. At the time of writing, the TVL stands at $185 billion.
Decentralized exchange (DEX) trading volumes have also reached new highs across daily, weekly, and monthly timeframes. According to DefiLlama, DEX trading volume hit nearly $380 billion in November.
Additionally, The Block reports that the market share of decentralized exchanges compared to centralized exchanges reached 13.9% in October, marking the second-highest ratio in history.
Lending market growth and stablecoin expansion
The lending market has seen significant growth, with active loans peaking at nearly $21 billion in December, the highest monthly figure recorded. This trend suggests that more users are becoming comfortable utilizing financial resources on the blockchain.
The increase in active loans has also fueled the growth of the stablecoin market, which, according to Artemis, is nearing $200 billion. Users are leveraging their crypto assets as collateral to borrow stablecoins, thereby adding liquidity to their holdings and increasing their exposure to cryptocurrency markets.
Aave, a leading decentralized finance (DeFi) protocol, is exploring an integration with Chainlink’s newly launched Smart Value Recapture (SVR) oracle.
