Decentralized Lending Protocol Aave continues to dominate in Defi with its total net deposits that climb 55% in July and reached to $ 60 billion in early August, who break new all-time highlights, per data from Token Terminal. Net deposits on a credit protocol represent the total assets that have been deposited to the protocol, minus outstanding loans.
The total value locked (TVL) on Aave also rose by more than 40%in July, an increase largely fed due to growing support for liquid reinforcement sticks (LSTs) such as Cbeth, WSTeth and Weth on the basic network of Coinbase, according to Defillama data.
Aave TVL per chain. Source: Defillama
The vast majority of Aave from Aave is on Ethereum, which grew by 47% last month. On-chain statistics, however, show that the Aave TVL has also risen considerably on the basis of more than 40% in July grew to more than $ 1 billion, which surpassed the growth of around 10% on other chains such as Avalanche and Polygon in the same period.
The increase in the net deposits has a closer to the size of the Top 40 American banks, per data from X user 0xkolten, the Defi marketing director for Aave -developer Avara.
The growth of July in July is at least partly thanks to the price growth of ETH in the month, which probably supported wider Defi activities in the Ethereum network. Ethereum recorded strong price profits in July, with the price of ETH climbing from almost 50% from $ 2,400 to around $ 3,700, while Spot Ethereum saw ETF record current and spent public companies to store ETH for their treasury.
ETH 1 month price tag. Source: Coingecko
Mixed results
However, it is unclear whether the growth of Aave last month was only powered by the ETH price action, because other loan protocols on Ethereum are not doing so well.
Sparklend, for example, rose by 38% of $ 5.28 billion at the beginning of July to $ 7.28 billion before July 22, before he dropped to $ 6.72 billion at the beginning of August, reducing his monthly profit to 27%.
Composite financing, a different credit protocol, grew more modest and rose by around 11% from $ 3,59 billion to around $ 4 billion during the course of the month. Morpho registered approximately the same increase as Aave, almost 40%, its TVL climbs 39% from $ 6.57 billion to $ 9.14 billion in the same period, which reflect the current changes in liquidity movements between credit platforms based on Ethereum.
July also marked the second highest month of Aave since January, with the platform, according to Defillama, generating more than $ 3.7 million.
In the midst of the news of new milestones of growth, the price of Aave Aave’s indigenous assets rose by 5% to $ 286 in the last 24 hours.
As the Defiant reported earlier, Aave’s rapid growth recently produced an increase in phishing attacks that focus on users of the protocol. One Aave Ethereum USDT holder lost more than $ 3 million this week in a phishing wamper.
