Aave net deposits reached 33.4 billion dollars, which exceeded the levels of 2021
Net deposits on decentralized finance (DeFi) platform Aave reached $33.4 billion, a new all-time high for the lending protocol and the highest level seen during the 2021 bull market.
The protocol expanded its presence in 2024 by adding BNB Chain, Scroll, ZKsync Era and Ether.fi to the list of supported markets.
Ave may add several new markets by 2025, including Sonic, Mantle, Ethereum Layer-2 scaling solution Linea, Bitcoin Layer-2 solution BOB, Spider Chain and Aptos.
Diffie experienced total value lock and movement following Donald Trump's US election victory on November 5 due to expectations of a friendly regulatory environment and pro-crypto policies.
Digital Asset Sectors Market Highest Growth in 2024. Source: TIE Terminal
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The renaissance of decentralized financial experiences
DeFi tokens rallied up to 30% following the US election results.
Investors and industry executives speculate that if comprehensive crypto legislation is enacted, DeFi projects will be able to explore revenue sharing through fees collected by their respective tokens.
Charlie Sherry, chief financial officer of BTC Markets and a cryptocurrency analyst, told Cointelegraph that DeFi projects and companies have avoided adding value storage mechanisms for fear of litigation from the Securities and Exchange Commission.
By 2024, the total value locked in the Diffie sector has risen by 150%. According to data from Defillama, the total value locked up in DeFi is currently around $130 billion.
Total value locked in the DeFi sector. Source: Defillama
The growth of the sector has been supported by the rise of liquidity recovery protocols such as EigenLayer and the proliferation of Bitcoin (BTC) DeFi products such as wrapper and layer-2 networks.
Meanwhile, DeFi hacks are down 40% by 2024, a welcome sign for a sector traditionally plagued by hacking and cyber security exploits.
According to Hacken, a blockchain security firm, protocol improvements, stronger encryption, and more robust bridges have strengthened the security of decentralized financial platforms compared to 2023.
In contrast, financial losses from hacking and centralized exchange breaches more than doubled over the same period, with losses exceeding $694 million for the year.
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