The decentralized finance (DeFi) sector is showing signs of resurgence, particularly highlighted by the lending platform Aave, which has recorded an impressive increase in its weekly active borrowers. Recent data indicates that the platform has reached an all-time high of approximately 40,000 active borrowers each week, surpassing previous records set in late 2022. This surge is attributed to the rise of new lending markets, notably Base and Scroll, which have contributed significantly to Aave’s growing user base.
Base is now responsible for nearly 30% of the unique wallets interacting with Aave’s V3 protocol, as found in analytics from Dune. The other prominent players include Arbitrum and Polygon, which account for 23.4% and 21% of Aave’s wallet share, respectively. Furthermore, there is a noticeable increase in the number of weekly depositors on Aave, suggesting that more users are getting involved in lending activities on the platform.
Aave operates as a decentralized protocol across 12 different blockchains, focusing on overcollateralized loans. It enables users to deposit cryptocurrencies to obtain loans through the use of smart contracts, which automate various processes including fund distribution, collateral management, and fee charges. It is currently ranked as the third-largest DeFi protocol by total value locked (TVL), standing at approximately $11.85 billion. Although the TVL has seen a remarkable increase of 70% this year, it is still lower than its peak of around $20 billion recorded in October 2021.
In the broader context of the DeFi ecosystem, active loans have reportedly returned to levels that have not been seen since early 2022, reaching about $13.3 billion. Moreover, the total value locked across DeFi has risen by 40% this year, bringing the overall figure to approximately $90 billion. Despite recent market corrections, the ongoing recovery narrative within the crypto community remains strong, fueling optimism about the future of DeFi.
