Aave Protocol Now Holds over US$20 Billion in Total Value, Remains Ahead of MakerDAO and Compound

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June 3, 2021
Aave Protocol Now Holds over US$20 Billion in Total Value, Remains Ahead of MakerDAO and Compound

Aave (AAVE), the decentralized loan and borrowing protocol, now has a total value (TVL) of more than US$20 billion. It has become possible because of the deployments of its version 2 and Polygon. 


The company had raised US$25 million in October 2020. With the boom in DeFi industry, the total value locked (TVL) has catapulted to US$11 billion. As of now, the TVL has increased to US$20 billion. Out of which US$12.6 billion is held in version 2 of Aave and the rest US$7.8 billion is held in Polygon protocol. 

AAVE DEFI OVERVIEW: BORROW & LEND CRYPTO - BitCryptoLancer


All these aspects have positioned Aave in a very good position, placing them far ahead of Compound protocol, the main competitor of Aave. In comparison to other DeFi cryptocurrency lending protocols, Aave is attracting new users at a high rate. In comparison to MakerDAO and Compound, Aave is attracting 50% more new users. In the month of May 2021, the percentage of new users to the platform of Aave, MakerDAO, and Compound are 44%, 29.8%, and 26.3% respectively. 


Analysts say that it is the deployment of Polygon that is bringing the required competitive advantage for Aave. The Layer 2 sidechains used by Polygon helps it to make transactions faster and cheaper than on Ethereum. 


Polygon is witnessing amazing success in the last 1 year. This made its price explode in 2021. At the end of January 2021, Polygon’s price was hovering around US$0.03. However, its price shot up to US$2.45 in mind-May 2021. Currently, its price is hovering around US$1.82. 


Aave’s (AAVE) price has shot up in the last 5 months (Jan-May 2021) by around 350%. At press time, its price is hovering around US$403.30.

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