The money market protocol would replace the Prosperity Bank, which has $38.4 billion in deposits, and would fall just $300 million short of surpassing Bank OZK.
Considering the Fed lists 2,156 commercial banks in the US, Aave’s size is enough to place it among the top 2.5% largest banks in the country.
The TVL increased by the borrows would be enough to place Aave among the 37th largest US commercial banks, a 1.7% group.
“Aave Protocol is like the 37th-largest bank, except it isn’t a bank, but a network any financial institution can plug into to unlock non-Fed–correlated yield.”
The money market protocol controlled approximately 50% of the DeFi lending market’s total TVL as of Aug. 24, commanding a dominant position within the $81.5 billion lending sector.
The AAVE token is following the protocol’s fundamentals. Since recording a low of $114.05 on April 8, the token has climbed over 177% to $316.74 as of press time.
The multiple records demonstrate Aave’s evolution into institutional-grade financial infrastructure, capturing market share as traditional finance institutions integrate decentralized lending services into their operations.
