Is there a new sheriff in the city?
The sharp increase in demand for the protocol for decentralized lending and borrowing Aave continues. This week, this DeFi project was able to overtake MakerDAO in the number of locked dollars. We want to remind that last week, Aave shot from the locked $500 million to $1 billion, clearly breaking into the top three. If you look closely at the growth chart of this project locked dollars, you can see that after a jump of $500 million, all further growth is harmonious and measured.
Stani Kulechov, the founder and CEO of Aave, shared his emotions, writing in his twitter that he did not expect to reach such a peak.
Aave project also took a rather active position in the news environment. We remind that this week the founder and CEO Stani Kulechov made Elon Musk an offer to tokenize Tesla. Thus, Kulechov wants to use Tesla cars as collateral to borrow assets USDC and join Tesla to the world of DeFi. Perhaps, the first place of Aave in the ranking of decentralized finance projects will draw Mask’s attention to the offer.
In addition, the use of Aave credit delegation feature enabled the Opium Network project to create a Credit Default Swap (CDS) in decentralized finance. It is possible that this breakthrough has not yet showed itself in the form of locked dollars increase. However, the active use of Aave to create new DeFi projects and features will definitely increase the gradual growth and value.
Analysis of other top DeFi projects positions.
MakerDAO is gradually losing its position on locked funds. This week, the total value locked fell by almost 5%. Though, this project continues to remain in the DeFi space top 3.
The decentralized Curve Finance exchange is increasing its influence, aiming to win 2nd place in the DeFi project score table. During the week, we followed a slow but steady growth of locked funds by 10%.
Balancer – an automated asset and liquidity management protocol – showed quite confident growth this week. Balancer increased its locked funds by 54%, so the project takes 8th place.
The total value locked is $340 million now. After the project participants voted on the introduction of the BAL liquidity rate, the amount of locked funds increased from $263 to $350 million in 2 days.
In total, the amount of locked dollars in the top 40 DeFi projects is $6.9 billion, which is by 6% more than last week. The value of the three largest DeFi space projects is 57%.
We continue to follow the fierce fight in the top 3 DeFi projects. Next week we will see whether Aave will be able to maintain its leadership.
Charts courtesy of DeFi Pulse