Lending Protocols See $5B Surge In Active Loans, Led By Aave
Lending protocols have experienced a significant boost in active loans, adding approximately $5 billion year to date. Aave, the leading lending protocol by total value locked (TVL), accounts for $4.5 billion of this increase. Unlike the previous all-time high in 2021, new entrants Spark and Morpho have now secured positions in the top three, with $1.7 billion and $1.1 billion in active loans, respectively. Aave remains the dominant player, commanding a 62% market share with $7.9 billion in active loans. https://twitter.com/tokenterminal/status/1808228481551000012?t=VIC19NRSgRP7Qx4hapY-Ew&s=19 Last week, the value of borrowed WETH on Aave, with a health factor between 1 and 1.025, surged to $1.2 billion. This spike followed Aave's introduction of Leverage Restaking Tokens (LRTs) for 14x leverage strategies. However, such high leverage can lead to increased risks of liquidation if loans are not carefully managed. https://twitter.com/intotheblock/status/1808054336737456537?t=mLU1fmPazDg_aXO1kkZfzA&s=19 Over the weekend, the total value […]