Yahya 
DeFi applications sound the alarms, for Aave is a lending and borrowing platform that has reached a new high of weekly active borrowers. On August 14, the founder of Aave Stani Kulechov revealed on Twitter that the protocol has hit 40k weekly active borrowers, which is the record accomplished only in late the previous year.
This growth has to do mostly with the creation of new lending markets such as Base and Scroll. Reports unveiled by Dune shows that Base holds 29,8% of the current unique wallets on Aave V3, the rest is controlled by Layer-2 platforms Arbitrum and Polygon, with control 23,4% and 21% of the Aave wallet shares respectively.
DeFi Ecosystem on the Rise
The number of users that borrow on Aave is not the only direction of the platform’s growth: weekly deposits are also close to reaching the maximum, although daily, and noticeably increased at the beginning of this month. Aave is currently provided in 12 blockchains and focuses on the lending of overcollateralized assets, where all loan procedures are administered by intelligent contracts.
Currently, as the third-largest DeFi player by the total value locked, Aave has a TVL of $11,85 billion, up by 70% in 2021. It is, however, lower than this high and was around $20b in October 2021.
The rest of the DeFi sector is also starting to rebound at this stage as well. The active loans in the DeFi sector were near $13,3B recently, which is comparable to the numbers at the start of 2022. The market TVL has still been on the rise through the year, up 40% thus raising the industry totals to $90 billion, albeit from a recent market correction.
The perception of the growth of DeFi in the nascent crypto space can doubtlessly be observed as platforms such as Aave move from experiencing downturn and market decline to rebounding and attracting new customers in the process. Arthur Cheong of Defiance Capital acknowledged the investment opportunity by saying that there is ‘‘high growth at a low multiple,’’ which should be attractive to investors.
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