AAVE, a leading DeFi platform, has achieved a significant milestone. Net deposits on its platform reached $33.4 billion. This new all-time high surpasses the previous peak seen during the 2021 crypto bull market, signalling strong growth and adoption of the DeFi ecosystem.
The Growth in the DeFi Sector
AAVE’s latest success highlights the platform’s increasing influence within the decentralized finance sector as it continues to expand and enhance its offerings.
In 2024, AAVE expanded its reach by adding several new supported markets, including BNB Chain, Scroll, ZKsync Era, and Ether.fi. These new integrations brought in a combined value of $2.55 billion, boosting AAVE’s market leadership and demonstrating the platform’s ability to adapt to the rapidly evolving DeFi landscape.
AAVE’s Plans for 2025
As part of its continued efforts to broaden its ecosystem, AAVE is eyeing even greater growth in 2025. Proposals for new integrations with projects such as Sonic, Mantle, Linea, BOB, Spider Chain, and Aptos are already in the pipeline, which is expected to enhance the platform’s modularity, capital efficiency, and liquidity rollout, especially with the launch of AAVE V4.
One of the key developments for AAVE in 2024 was the successful launch of its decentralized, overcollateralized stablecoin, GHO, which has added another layer of functionality to the platform.
GHO debuted on Arbitrum earlier in the year and will soon expand to other networks such as Base and Avalanche, further enhancing AAVE’s presence across multiple blockchain ecosystems.
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This expansion is expected to bring additional development and adoption, especially as AAVE continues to work towards its long-term vision for 2030. AAVE’s TVL also surged alongside its net deposits, reaching an impressive $35 billion.
The rise in TVL reflects the growing confidence in DeFi protocols, as more assets flow into platforms like AAVE for lending, borrowing, and yield farming activities.
The platform’s total value locked is a key indicator of its success, as it highlights the amount of capital that users have entrusted to AAVE’s smart contracts.
AAVE’s Price Actions
AAVE’s native token, AAVE, has also seen significant growth, trading at $331.40, up by nearly 8% in the past 24 hours. The token’s market cap is currently at $4.98 billion, reflecting growing investor interest in both the platform and the broader DeFi sector. The 24-hour trading volume has also surged by 13.75%, further signalling the strength of the platform in the crypto market.
The broader DeFi sector has experienced a surge in total value locked and activity in 2024, spurred by expectations of a friendlier regulatory environment following Donald Trump’s U.S. electoral victory.
Trump Family Backed WLFI Invests in AAVE
Aave has lately been acquired in large quantities by Trump Family backed World Liberty Financial (WLFI), a decentralised finance initiative supported by President-elect Donald Trump.
Additionally, the initiative contributed $1 million to Aave and Chainlink. At $24.2 per unit, WLFI purchased 41,335 LINK tokens, and at $297 per unit, it purchased 3,357 AAVE tokens.
This optimism has led to significant rallies in DeFi tokens, with some gaining as much as 30% immediately following the U.S. elections.
Industry executives and investors speculate that DeFi projects may be able to explore revenue-sharing models via transaction fees if comprehensive crypto legislation is passed.
In another notable achievement, AAVE has hit $10 billion in active loans, marking a 300% increase in lending activity since the beginning of 2024, when the figure stood at $3.4 billion.
This surge in active loans highlights the growing demand for decentralized lending services, further cementing AAVE’s position as a key player in the DeFi space.
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