X @Token Terminal 📊

Lending Protocol Market Overview - Total deposits into lending protocols have surpassed $100 billion, reaching approximately $100.2 billion, a 313% (3.13x) increase in the last year [1] - Aave holds $64.6 billion, representing 64% of the lending market [1] - Over the past year, Aave has experienced 300%-400% (3-4x) growth across key metrics like TVL (Total Value Locked), fees, revenue, and active loans [1] Potential of Lending Protocols - Lending protocols have the potential to become the world's largest banks due to borderless access to capital, better yields for lenders, and 24/7 instant liquidity [2] - Lending protocols support more types of collateral, including crypto, NFTs, tokenized stocks, gold, and silver [3] - Lending protocols offer global rate opportunities, allowing users to borrow where rates are lowest and lend where returns are highest [3] - Various entities, including hedge funds, corporations, banks, and governments, are expected to participate in lending protocols [3] Aave's Potential and Tokenization Impact - Tokenization enables anyone to buy U.S stocks from anywhere, without KYC or proof of address, and at low fees, potentially driving greater demand for U.S equities [5] - Aave offers loans at around 4%-6%, with interest rates being the same for everyone, regardless of their location [6] - Tokenization allows individuals from countries with higher interest rates and stagnant stock markets to invest in better-performing markets and use their stocks as collateral for borrowing [7] - If 10% of the $23 trillion market cap of the top 10 U.S stocks comes on-chain in the next five years, it would amount to $2.3 trillion; if 10% of that goes into Aave for lending, it would be $230 billion [7] - Aave is projected to reach at least $500 billion to $700 billion in TVL by 2030 [8]