Reportedly, top decentralized finance (DeFi) protocols seem to be lending out a massive amount of money as the value of outstanding digital currency loans in these protocols has surged high significantly. According to Dune Analytics’ dashboard, outstanding cryptocurrency loans have jumped above $3 billion in DeFi loans. While on the other hand, the total value locked (TVL) in decentralized finance has also skyrocketed.
These top three decentralized finance lending protocols are MakerDAO (MKR), Compound (COMP), and Aave (AAVE). According to Dune Analytics, $3,078,085,890 worth of outstanding cryptocurrency loans is available on these lending protocols. The site’s dashboard further reveals that an amount of $98 million in cryptocurrency loans was borrowed by users during the last week only.
Among three DeFi protocols, the most famous one is Compound. Out of the total outstanding crypto loans, approximately $1.6 billion is available on the Compound protocol. This amount is half of all loans present on these three protocols. While on the other hand, $1 billion and $361 million in digital currency loans are available on the other two DeFi protocols MakerDAO and Aave respectively.
The decentralized finance protocol Compound has been the dominant protocol in the market since its launch. Particularly, the Compound had witnessed significant growth when it launched its native governance token COMP. Back in the month of July, Compound counted for 85 percent of the total share of the market. While on the other hand, MakerDAO and Aave were holding 15 percent and 2.55 percent of the entire share at that time. But now, Compound only has 52 percent of the share. MakerDAO and Aave make up 33 percent and 12 percent of the share, respectively.
While on the other hand, MakerDAO has a greater total locked value (TVL) than that of Compound. As per the data from DeFi Pulse, the TVL of Maker is $2.52 billion while $1.56 billion is locked in the Compound protocol. The third-ranked lending protocol Aave, on the other hand, has $1.38 billion in total locked value. Collectively, the total locked value across all DeFi protocols has surpassed the $14 billion mark.