Different things about Aave and Anchor Protocol make them the leaders in DeFi lending.
Decentralized finance depends on lending. Aave is rising again despite Anchor's high Total Value Locked. Will the top TVL slot change in the coming weeks?
Aave's return?
Aave no longer dominates DeFi lending. It's the most popular Ethereum blockchain lending protocol, ahead of Compound, Iron Bank, Notional, and B.Protocol. Aave is the most relevant Ethereum DeFi lending project, especially after the V3 upgrade. Users have waited for these upgrades, as funds are transferring between old and new smart contracts.
Cryptomonday.de says Aave's price is rising. AAVE's market valuation surpassed $2.5 billion, but it's since fallen below $2 billion. All crypto markets are bearish in 2022, preventing expansion. Aave has the biggest market cap, ahead of Maker, Celsius Network, and Kava.
Even while Aave isn't the top decentralized lending protocol, its supremacy is clear. Growing loan competition increases demand for these methods and their charges. These protocols allow lending and borrowing and pay users with collateral. Aave's typical daily revenue is around $500,000.
In the coming months, it will be intriguing to observe what happens to AAVE. Anchor Protocol took over as Terra's TVL leader. ANC's market cap is one-third of AAVE's, therefore it keeps the lead. Anchor Protocol has 0.04 market cap/TVL and Aave 0.17. Both ratios look modest, but they don't predict price growth.
Innovation is important
Aave, Anchor Protocol, and other lending protocols must innovate. Developers can improve present financing rates and restrictions. DeFi is still young, so it will be interesting to see what the future holds.
Aave may explore cross-chain interoperability. Aave supports Ethereum, Avalanche, and Polygon. However, the developers intend to explore interoperability with even more networks.
Terra and Avalanche host Anchor Protocol. It's a stable ecology with a 3.74 percent monthly TVL rise. It may also investigate a presence on various blockchains, but nothing is official. DeFi financing will get fascinating, which will benefit users.