Aave V4 Deposits Soar Past $800 Million as Ethereum Core Market Dominates
Aave's V4 protocol has seen a significant surge in deposits over the past week, reaching a record $806 million. This represents a 30% increase from just seven days ago, with active loans standing at $206 million.
The majority of these deposits, around 47%, are held within the Ethereum Core market, which is one of six listed markets on Aave V4. The other notable market is EtherFi Cash on Optimism, holding approximately $257 million in deposits.
Interestingly, the largest individual asset supplied to V4 is WeETH, a liquid staking token, with deposits totaling $97 million. This highlights the growing popularity of decentralized finance (DeFi) tools and platforms within the crypto ecosystem.
The hub-and-spoke model adopted by Aave V4 appears to be gaining traction, as it allows for tailored risk controls and specialized lending markets. The protocol's DAO had previously approved $25 million in stablecoin funding and 75,000 AAVE tokens for protocol development, further solidifying its commitment to this new framework.
Outside of Ethereum and Optimism, Avalanche Core has attracted $18 million in deposits, marking the network's first V4 deployment beyond Ethereum. This expansion into new markets could potentially lead to increased adoption and liquidity within the Aave ecosystem.