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The lending platform also introduced Aave v4 in 2024, while its GHO stablecoin expanded to multiple blockchain networks.
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Net deposits on the decentralized finance (DeFi) platform Aave hit $33.4 billion, marking a new all-time high for the lending protocol and surpassing levels seen during the 2021 bull market.
The protocol also expanded its presence in 2024 by adding BNB Chain, Scroll, ZKsync Era, and Ether.fi to its supported list of markets.
Aave may also add several new markets in 2025, pending community approval, including Sonic, Mantle, Ethereum layer-2 scaling solution Linea, Bitcoin layer-2 solution BOB, Spider Chain, and Aptos.
DeFi experienced a surge in total value locked and activity following Donald Trump’s US electoral victory on Nov. 5 due to expectations of a friendlier regulatory environment and pro-crypto policies.
Digital asset sectors market cap growth in 2024. Source: The TIE Terminal
Related: Aave mulls Chainlink integration to return MEV fees to users
Decentralized finance experiences renaissance
DeFi tokens rallied by up to 30% immediately following the results of the US elections.
Investors and industry executives speculate that DeFi projects will be able to explore revenue sharing via fees that accrue to their respective tokens if comprehensive crypto legislation is passed.
Charlie Sherry, head of finance and a cryptocurrency analyst at BTC Markets, told Cointelegraph that DeFi projects and firms avoided adding value accrual mechanisms due to fear of litigation from the Securities and Exchange Commission.
The total value locked across the DeFi sector surged 150% in 2024. According to data from DefiLlama, the total value currently locked in DeFi is approximately $130 billion.
The total value locked across the DeFi sector. Source: DefiLlama
Growth in the sector was underpinned by the rise in liquid restaking protocols such as EigenLayer and a proliferation of Bitcoin (BTC) DeFi products like wrappers and layer-2 networks.
Meanwhile, DeFi hacks dropped by 40% in 2024, a welcome sign for a sector normally plagued by hacks and cybersecurity exploits.
According to blockchain security firm Hacken, protocol updates, stronger cryptography and more robust bridges bolstered the security of decentralized finance platforms compared with 2023.
In contrast, monetary losses from hacks and breaches of centralized exchanges nearly doubled during the same period, with losses crossing $694 million for the year.
Magazine: DeFi and Ethereum are the ‘new narrative’: Michaël van de Poppe, X Hall of Flame
This article first appeared at Cointelegraph.com News
