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As the crypto market makes a recovery, the total value locked (TVL) in the decentralized finance (DeFi) sector has hit a new all-time high of $199.04 billion, according to DeFi Llama. And popular lending platform Aave is currently dominating the DeFi TVL. With a dominance of 7.74%, Aave leads the space with $15.4 billion in TVL, aiming for an early Sept. peak of $16.25 billion. This TVL has increased 24% in the past 24 hours. The majority of this Aave’s TVL belongs to the Ethereum blockchain at $12.36 billion, with Polygon next but nowhere close at $2 billion. [coin_stats_table symbol="ETH"][coin_stats_table symbol="MATIC"] Interestingly, the Aave Protocol was deployed on Avalanche on Monday, and it already has more than $1 billion locked on this chain. This deployment allows users with assets on Ethereum to bridge them via Avalanche to deposit on the Aave Protocol. At launch, the community guardians elected by Aave Governance will hold the admin keys to the Aave deployment on Avalanche and then release them to the Aave Governance, said the team on Twitter. https://twitter.com/AaveAave/status/1445051818015445009 Last month, the Aave community supported Aave’s deployment on Avalanche, with an overwhelming majority, 99.97%, voting in favor of this deployment. The rationale behind going with this smart contract platform was the Avalanche network being secured by over 1,000 validators and scalable to tens or hundreds of thousands of participants. The proposal read,
“While maintaining this level of decentralization, the network can deal with high throughput and provides instant finality in 1-2 seconds, making the network’s C-Chain an incredible playground for DeFi and other EVM applications.”
Other popular DeFi protocols like SuhsiSwap and Curve are also deploying on Avalanche. [coin_stats_table symbol="SUSHI"][coin_stats_table symbol="CRV"] Additionally, the Avalanche Foundation has allocated up to $20 million AVAX tokens for Aave users to be allocated over a 3-month period through rewards for using Aave on Avalanche. Aave is a DeFi blue-chip with a market cap of $4 billion whose governance token AAVE is trading at $305, down 50% from its all-time high of $662 hit in mid-May. AVAX meanwhile is a much larger crypto with a market cap of $14.4 billion, trading at $65.57. Since June, this cryptocurrency has been enjoying an uptrend and made its ATH just late last month at $80. [coin_ticker symbol="AAVE"] [coin_ticker symbol="AVAX"]