Aave Dominates DeFi Lending Space, Followed by Compound and JustLend in Market Cap

Author : Elisabeth Louise | Published On : 12 Jan 2024

Aave continues to assert its dominance in the decentralized finance (DeFi) lending sector, maintaining a substantial market cap lead. With a market cap of $1,529.73M, Aave outshines competitors like Compound and JustLend, with market caps of $368.75M and $273.90M, respectively. This significant market cap difference underscores Aave's prominent position in the valuation of lending protocol tokens.

Aave further solidifies its lead in transaction volume, handling approximately 40% of the total transaction volume in collaboration with Radiant. This highlights Aave's influential role in shaping the DeFi lending landscape.

In terms of protocol revenue, Aave stands out with an average daily revenue exceeding $100k. Radiant, while impressive with a $50k daily revenue, heavily relies on $RDNT emissions for its sustainability.

Long-term holder trends offer insights into user confidence, revealing growth in addresses and Hodler Ratios for Aave and Benqi. AAVE, with 328k holders and a 30.12% holder ratio, contrasts with Compound, which sees a 20% drop in Hodlers, falling to 28.43% with 232k holders. This divergence may signal concerns among long-term holders regarding Compound's competitive standing in the ecosystem.

As of the current market surge following the SEC's approval of the Bitcoin ETF, both AAVE and COMP are trading bullishly. AAVE has retraced above the $100 key level, trading at $114 with a 15% gain on the daily timeframe. COMP's price has increased from $49 to $56, recording an 11% gain in the past 24 hours.

While Aave's dominance in various metrics underscores its strong presence, the contrasting trends in holder confidence for Compound and Benqi highlight the dynamic and competitive nature of the DeFi lending space. The DeFi lending landscape, led by protocols like Aave, exhibits robust growth and market influence, yet fluctuating holder trends and revenue streams across different protocols signal an ever-evolving market.