After a period of subdued activity, the lending market is showing signs of revival, with Aave taking the lead. On May 7, Aave recorded its largest day of net borrows in over a year, with $158.65 million in loans taken out. This marks a significant shift from the past 12 months, where net borrows were mostly mild with occasional spikes.

In recent months, there has been a steady increase in borrowing activity, with 36 days of net borrows exceeding $20 million since February. Additionally, Aave has seen a surge in unique borrowers, with over 200 addresses borrowing from the platform daily in May, a significant increase from the fewer than 100 addresses in May 2023.

While Compound has not seen much net activity, Aave has emerged as a dominant force in Ethereum lending, particularly after the launch of its v3 in early 2022. The increase in borrowing activity on Aave coincides with a rise in DEX volumes on Ethereum, although still lower compared to their peaks in late 2021.

Interestingly, lending on other chains like Solana and Tron has gained popularity, with JustLend on Tron exceeding Compound in total value locked. Both Aave and Compound have expanded their offerings to other networks, indicating a growing demand for lending services across various blockchain platforms. As the crypto market continues to evolve, it will be interesting to see how the lending landscape adapts and grows.