In the rapidly evolving landscape of blockchain and cryptocurrencies, Ethereum-based DeFi protocol, Aave, marks a remarkable achievement as its V3 version surpasses the 10,000 unique user addresses mark. This milestone comes in just under half a year since Aave V3 was rolled out on January 27th, illustrating its steady adoption within the crypto community in South Africa and beyond.

To date, Aave V3 has accumulated deposits amounting to an impressive ZAR 40.18 billion ($2.24 billion), with loans facilitated reaching around ZAR 13.59 billion ($756.93 million). This substantial increase in user participation has contributed to an upsurge in the total value of assets locked (TVL) within Aave’s decentralised finance platform. The platform experienced a robust 60% growth from a TVL of ZAR 68.51 billion ($3.82 billion) at the beginning of 2023 to its current level of ZAR 109.75 billion ($6.12 billion).

Initially, Aave V3 was introduced on multiple blockchain networks, such as Polygon, Arbitrum, Avalanche, Fantom, Harmony, and Optimism. The decision for deployment on Ethereum was left to a community vote, which was conducted later. Following the Ethereum launch, which was supported by the community and went live 11 months after the initial announcement, Aave V3’s TVL on Ethereum witnessed a surge of more than 300%, standing at ZAR 37.67 billion ($2.1 billion).

With this exponential growth, Aave has overtaken MakerDAO to secure the second-largest TVL among DeFi protocols. The leading position is held by Lido Finance, with a TVL of ZAR 267.34 billion ($14.90 billion), while MakerDAO settles for the third position with ZAR 95.25 billion ($5.31 billion) in locked assets.

Since its deployment, wsETH (wrapped staked Ethereum) supplied on Aave V3 has grown at a faster pace compared to other assets. Over 373,000 wsETH tokens, equivalent to approximately ZAR 14.38 billion ($802.04 million), have been supplied to the protocol. Despite this, only a relatively small portion of wsETH tokens, amounting to around ZAR 373.89 million ($20.84 million), have been borrowed so far. Ethereum remains the most frequently borrowed asset on the platform, with disbursements totalling approximately ZAR 5.40 billion ($301.45 million) since the V3 iteration was introduced.

Aave’s V3, with its significant traction in the DeFi space, is clearly a major player. It continues to attract a large and growing user base while simultaneously witnessing a substantial increase in the TVL. As Aave continues its evolutionary journey, it remains a preferred platform for many South African crypto enthusiasts and others worldwide seeking decentralised lending and borrowing solutions within the Ethereum ecosystem.