Lending has become a crucial aspect of the decentralized finance industry. Being able to leverage one’s crypto holdings for a loan can spark renewed interest in this industry. Statistics confirm this concept is trendy, although there is always room for further growth.
Analyzing DeFi Lending
The statistics provided by Dune Analytics track the top three lending platforms: Compound, MakerDAO, and Aave. All of these projects are prevalent in the DeFi space and try to gain more widespread traction. There is a long way to go before any of these ventures can achieve mainstream traction, but for now, they are performing as well as one can expect.
In the past seven days, there has been over $606.8 million in net borrow. It represents a large share of the net borrow in the past 30 days, which sits at over $1.5 billion. In comparison, the total amount of loans outstanding across these three platforms is now over $8.4 billion. A drop in the bucket compared to traditional finance, but a viable starting point.
Digging a bit deeper, we see that Compound represents the highest value in outstanding loans. The project is ahead of MakerDAO by over $1 billion, with Aave coming in third place at a more significant distance. One may think this gap can be closed with ease, but that isn’t necessarily the case.
Additionally, having more outstanding loans isn’t necessarily a healthy statistic. There is a lot of value that needs to shift between borrowers and lenders at this rate. One has to hope nothing goes awry with any of these platforms, or things may get ugly quickly. Lending is still in its infancy where DeFi is concerned, but it is a prominent finance aspect.
The Top Loan Assets
On the same dashboard, it is evident that most users are looking for DAI loans these days, as it represents 54.5%. A smart choice, as DAI is a stablecoin that remains free from wild price fluctuations. Even so, its use cases are relatively limited, other than speculative purposes or trading. Both of these options carry systemic risk.
Looking beyond that asset, USDC, WETH, and USDT are also very popular. No one will be surprised to see three stablecoin assets in the top four. This trend seemingly applies to all three lending platforms, which is rather remarkable. WBTC completes the top five, although it represents “only” $172 million in outstanding loan value.
Overall, these three lending platforms appear to perform rather well. There is also a strong increase in borrows lately, indicating the concept of crypto loans may gain a bit more traction. As long as users pay back their loan on time and without issues, this industry can thrive for many years to come.