Aave achieved a record total value locked (TVL) of $41.1 billion, ranking among the Top 54 US commercial banks by size.

Aave is the largest decentralized lending protocol, accounting for nearly 50% of the TVL market share in the DeFi lending sector with a total scale of $71.1 billion, ranking among the top 1.7% of US commercial banks.

MAIN CONTENT

  • Aave achieved a TVL of $41.1 billion, comparable to mid-sized commercial banks in the US.

  • The total asset scale, including TVL and loans, exceeds $71 billion, placing it in the Top 37 US banks.

  • Aave captures nearly 50% of the DeFi lending market share, six times larger than the biggest competitor Morpho.

How has Aave achieved its asset scale and how does it compare to US commercial banks?

Data from DefiLlama on August 24 shows that Aave's TVL reached $41.1 billion. Comparing the deposit figures of US commercial banks as of June 30, this scale ranks 54th among those banks. This means Aave has surpassed Prosperity Bank with $38.4 billion in deposits and is only slightly lower than Bank OZK by about $300 million. If including the unpaid loans of $28.9 billion as of the same date, Aave's total asset scale reaches $71.1 billion, equivalent to the top 37 largest banks in the US, accounting for approximately 1.7% of the total.

Stani Kulechov, the founder of Aave, emphasizes that the protocol is not a traditional bank but an open network providing financial services to organizations, with revenue sources entirely separate from the Fed.

How does Aave dominate the DeFi lending market?

As of August 24, Aave controls about 50% of the total TVL in the decentralized lending segment, while leading the market with a scale of $81.5 billion. This far surpasses the largest competitor Morpho, which is only at $7 billion, nearly 6 times less.

The TVL superiority demonstrates Aave's reliability and network strength in the DeFi ecosystem, providing a solid foundation for DeFi applications to grow.

"Aave is not a bank but an open network for financial organizations, providing revenue unrelated to the Fed."
– Stani Kulechov, Founder of Aave, 2023

Frequently Asked Questions

What is Aave and how does it work?

Aave is a decentralized lending protocol (DeFi) that allows users to borrow and lend cryptocurrency on the blockchain network securely, transparently, and without intermediaries.

What criteria is Aave's TVL calculated based on?

TVL is the total value of assets locked in the protocol, including deposited and borrowed assets, reflecting the scale of operations and the level of trust in the platform.

How does Aave compare to US commercial banks?

With a TVL of $41.1 billion and total assets of $71.1 billion, Aave is comparable to mid-sized commercial banks and ranks in the top 1.7% largest in the US.

Why is Aave not a bank despite its large scale?

Aave is a decentralized network, not under the control of governments or central banks, operating on principles of openness and transparency on the blockchain.

Who is Aave's biggest competitor in the DeFi lending market?

Aave's biggest competitor is Morpho with a scale of about $7 billion, roughly 1/6 the size of Aave as of August 2023.

Source: https://tintucbitcoin.com/aave-dat-tvl-41-ty-usd/

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