Crypto loans dispensed using DeFi protocols have now reached the $3 billion mark. Most of these loans are being given on MakerDAO, Compound, and Aave.
A new high for outstanding loans
According to Dune Analytics, the total value of outstanding crypto loans on three decentralized finance (DeFi) protocols has gone up to $3 billion. The three platforms- MakerDAO, Compound, and Aave have a total of $3,078,085,890 in outstanding loans. In the past week, users borrowed $98.8 million from these platforms. The decentralized protocols do not have a centralized agency control the money flowing through DeFi loans. This makes them different from regular crypto loan companies.
Compound leads the race
The most popular platform for crypto DeFi loans is Compound which is the home to over $1.6 billion in outstanding loans. MakerDAO is the second most popular platform with $1 billion in outstanding loans. Aave’s loan tally is at $361 million.
Compound experienced massive growth in loans in late June, right after it launched its governance token called COMP. The token was designed to allow users to vote on network update proposals. The token also trades on the exchanges which give users access to governance on the blockchain as well as other financial incentives.
Maker and Aave were able to gain more traction during the summer and autumn months when DeFi protocols were gaining more prominence. Both platforms are now closing the gaps with the market leader. In July, Compound held 81% of the market share while MakerDAO helps 15%. Aave held only 2.55% of the share. As of November, Aave’s holdings have increased to 12% and MakerDAO to 33% while Compound’s dominance has decreased to 52%.
In terms of the value of outstanding loans, Compound still holds a lion’s share but Maker is more dominant in terms of token. Maker’s decentralized stablecoin DAI is responsible for 75.7% of all loans, which totals $2.3 billion. This gives MakerDAO a significant advantage over COMP.