Aave

DeFi

Base

Decentralized finance protocols appear to be showing signs of recovery, with lending and borrowing platform Aave hitting a new record in weekly active borrowers.&nbsp;
In a post on X on Aug. 14, Aave founder <a href="https://cointelegraph.com/news/aave-founder-stani-kulechov-hospital-warning-crypto-founders">Stani Kulechov</a> reported that the lending and borrowing protocol has reached around 40,000 active weekly borrowers,&nbsp;eclipsing the previous high in late 2022.
&nbsp;Data shows it has been driven by the emergence of new lending markets such as Base and Scroll. 
Base now represents almost 30% of the total unique wallets on Aave V3, <a href="https://dune.com/KARTOD/AAVE-Mega-Dashboard" target="_blank" rel="noopener nofollow">according</a> to Dune analytics. Layer-2 platforms <a href="https://cointelegraph.com/news/aave-protocol-gho-stablecoin-live-arbitrum">Arbitrum</a> and Polygon are second and third, with Aave wallet shares of 23.4% and 21%, respectively.
At the same time, Kulechov noted that weekly depositors on the platform were almost at peak levels. According to Dune analytics, the number of Aave (<a href="https://cointelegraph.com/aave-price-index">AAVE</a>) depositors spiked earlier this month. 
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/eccc38e4-cf4a-4a7b-8c47-e752edb6840a.jpg" alt="DeFi rises again as Aave hits new ATH in weekly borrowers" title="">
 <figcaption style="text-align: center;">
 Aave weekly active borrowers. Source: Dune Analytics
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Aave is a decentralized platform running on 12 chains specializing in overcollateralized loans. It enables users to deposit crypto to take out <a href="https://cointelegraph.com/news/aave-trident-launch-100m-onchain-fixed-yield-loan">loans</a>. It uses smart contracts to automate the process, with preset rules on how funds are distributed, collateral is handled, and fees are assessed. 
Aave is the third largest <a href="https://cointelegraph.com/explained/bonding-curves-in-defi-explained">DeFi</a> protocol in terms of total value locked, according to DeFiLlama, with a <a href="https://defillama.com/protocol/aave#information" target="_blank" rel="noopener nofollow">reported</a> TVL of $11.85 billion. While protocol TVL has increased 70% so far this year, it remains down from its peak of around $20 billion in October 2021. 
Related: <a href="https://cointelegraph.com/news/defi-is-waking-up-again-active-loans-return-to-2022-levels">DeFi is ‘waking up again’ — Active loans return to 2022 levels</a>
Meanwhile, there is a growing narrative within the crypto community that DeFi is on the rise again as protocols begin to recover. 
Defiance Captial founder Arthur Cheong <a href="https://x.com/Arthur_0x/status/1823779058842525864" target="_blank" rel="noopener nofollow">commented</a> on the Aave growth on X, stating, “The mismatch between growth and valuation is where you get the best R/R for investing.”
In early August, Cointelegraph <a href="https://cointelegraph.com/news/defi-is-waking-up-again-active-loans-return-to-2022-levels">reported</a> that DeFi active loans had returned to levels not seen since early 2022, at around $13.3 billion.
Additionally, TVL for the overall DeFi ecosystem has gained 40% so far this year to reach $90 billion. However, the market correction has caused it to take a hit recently. 
Magazine:&nbsp;<a href="https://cointelegraph.com/magazine/ethereum-defi-cryptocurrency-tokens-narrative-bull-market-michael-van-de-poppe-cointelegraph-magazine/">DeFi and Ethereum are the ‘new narrative’: Michaël van de Poppe, X Hall of Flame</a>

DeFi rises again as Aave hits new ATH in weekly borrowers

Cointelegraph

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