AAVE or COMP: which DeFi lending platform has an advantage?


The top three DeFi projects currently listed by DeFiPulse include Maker, AAVE, and Compound. All three are categorized as loans, but there has been a small change over the past few weeks. While Maker maintained its top spot, AAVE edged out Compound in the rankings.

Since the beginning of January, AAVE has added more than $ 4 billion in TVL but according to recent data, COMP is currently catching up.

Supply volume crossed $ 7 billion for COMP on February 5

As reported in the Our Network report, Compound’s supply volume broke through the $ 7 billion mark in the first week of February and in the long run, assets have spiked 288% over the years. last months.

Source: Our network

The report adds that nearly $ 4 billion in outstanding borrowing volume is currently credited to Compound, with stablecoins championing 86% of its cause. Its loan market is currently fueled by three stable assets namely DAI, USDC and USDT.

The growth of collateral assets such as ETH and WBTC has also helped, with Compound currently accounting for 51% of the market share among the top three lending protocols.

Source: Santiment

Other factors that may have improved the case of the COMP token over the past two weeks are based on its on-chain metrics. In the last days of January 2021, Whale addresses holding more than 10,000 COMPs hit a new all-time high, indicating increasing interest and trends in the COMP ecosystem.

AAVE vs COMP: Who has the advantage in this DeFi battle?


Source: trading view

Since the rise of DeFi in 2020, the AAVE has picked up a significant pace in no time. For a rough comparison, since November 1, the value of AAVE has risen 1625% compared to COMP’s 477% rise. Now both increments are impressive, but now AAVE threatens to outperform COMP on all chords.

AAVE currently has a best market cap of $ 6 billion while COMP carries a total valuation of $ 2.3 billion. In TVL terms, AAVE still leads with $ 1.2 billion at the time of publication.

Source: Dune Analytics

Source: Dune Analytics

Now, according to Dune Analytics, Compound had more active users with more than 300,000 wallet addresses, while AAVE has fewer than 40,000 addresses. However, a person can hold multiple wallet addresses, so the information should be taken with a pinch of salt.

Verdict: momentum with the AAVE?

While the two projects won’t go bankrupt anytime soon, AAVE has a legitimate advantage over COMP. It supports 20 different assets compared to COMPO’s 11 and the protocol also offers stable interest rates which Compound does not.

AAVE is at the forefront of new developments, most notably V2 flash loans, which are also currently attracting more interest.

However, the race is far from over, as more maturity in the market could allow COMP tokens to rush into another discussion.


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