DeFi Rush In Full Swing As Aave Dethrones Compound

After Compound took the crypto-verse by storm, another DeFi lending platform has been outperforming popular DeFi applications and making its way to the top. DeFi continues to record new all-time highs. 

Aave The New Compound?

The cryptocurrency industry has evolved over time. While the industry paved the way to numerous platforms, it created an entire space dedicated to decentralized applications. Decentralized Finance, more popularly known as DeFi became the talk of the town after certain platforms locked in massive funds. Prominent DeFi lending platform, Compound Finance elevated the entire space after rolling out its governance token.

Compound gained immense traction and even went on to dethrone Maker. The buzz around Compound and the COMP token, however, did fade away. But, other platforms were faring quite well, further pushing the total value locked in DeFi to an all-time high of 3.37 billion USD. While Maker regained its position as DeFi’s biggest platform, Compound was pushed to the second spot. It seems like Compound couldn’t stay too long in the second position as well. Aave, a fairly new DeFi lending platform, took over as the second-largest DeFi platform. Maker locked a whopping 718.8 million USD, Aave locked a total of 560.4 million USD. Despite the significant disparity, the platform was lauded by many.

Compound, on the other hand, was seen locking just 547.6 million. Similar to its platform, the COMP token has also been performing poorly. The coin was defined as one of the worst performers during the recent alt season.

Additionally, the public sentiment towards Aave was also bullish. DeFi Pulse, through its Twitter account, started a poll regarding the same. The tweet read,

Which will be the first #DeFi protocol to reach $1B TVL?

— DeFi Pulse ? (@defipulse) July 23, 2020

The poll clearly reveals that a total of 47.5 percent of respondents believed that Aave would be the first DeFi platform to record the total value of 1 billion USD.

The total value locked in DeFi has been moving with any hurdles and recording new all-time highs every day. After recently breaching, 3 billion USD, in terms of the total value locked in DeFi, it seems to be making its way to hitting 4 billion USD, very soon. At the time of writing, a total of 3.39 billion USD was locked in DeFi.