Aave DeFi by Total Value Lock (TVL) has risen to the top of the rankings, amid its recent embrace of layer-two for scaling.
According to Ave’s website, v2 and Polygon deployments of the popular crypto-powered money market protocol currently represent more than $20 billion in closed capital, with $12.6 billion in respective volumes and more than $7.8 billion.
According to DeFi Lama, Aave v2 is currently the largest decentralized protocol by assets locked, while Aave’s Polygon deployment will be the fourth. Launching just six weeks ago.
The adoption of a layer-two solution, Polygon, appears to have helped its adoption compared to other major DeFi protocols.
Using data provided by Dune Analytics, Twitter user “DeFi Dividends” found that the share of Away’s monthly user base represented by new users is about 50% higher than that of MakerDAO and Compound, with Ave’s 44. % of users join newcomers in May compared to 29.8% for MakerDAO and 26.3% for Compound.
Excluding its Polygon deployment, Ave slashed the total value of Compound by one-third and nearly double the total value that MakerDAO borrowed.
Once again Away’s development is impressive! This is the first month where he has passed the comp for the highest amount borrowed. And it doesn’t even account for the extra $7b+ on polygons that Aave has. pic.twitter.com/Tl3SX9dc0m
— Defi Dividends (@DefiDividends) May 30, 2021
In early April — three weeks before it launches on Polygon, Ave’s Mark Zeller Predicted DeFi will transition to a multi-chain ecosystem that uses Ethereum’s layer-one mainnet for settlement.
It appears that Zeller’s vision is catching up with the leading influencer in the cryptocurrency space, ChainlinkGod, emphasizing In the near future “most of the chains will be L2 rollups that store data on L1 shards connected to Ethereum”.
Anthony Sasano, founder of The Daily Gwey, has also echoed this sentiment, by stating: “I think that the [Ethereum Virtual Machine (EVM)] has already won, I think EVM is going to be a winner for a long period of time, and there is going to be a point where it’s basically a handful […] of different series and L2s. “
Comments come just a few days after that mainnet beta launch The much-anticipated layer-two rollup sidechain, Arbitrum. Many Top DeFi Protocols Already Eager to Deploy on Arbitrum, with Uniswap, Curve Finance and Mcdex among protocol watchers.