Aave: A look at how the loan protocol went last week

Members of Aave [AAVE] The community voted in favor of a proposal to temporarily stop ETH lending on the platform. The vote held between August 30th and September 2nd saw members in favor of the Merger hiatus.

Blockchain analytics platform Messari found that despite the suspension, key ecosystem metrics recorded growth on September 5 and 11. These developments were highlighted in the recently published Aave Weekly Report.

The ‘Ghost’ protocol has seen some development

Even, despite the pause in ETHI’s lending, Messari found that total ETH usage increased by 9.3% between September 5th and 11th. This happened because users of the protocol raised ETH loans through other means.

These included Aave 3 and Aave 2, which were developed into Polygon and Avalanche chains. In addition, the protocol’s ETH revenue increased by 80% during the same period.

For key ecosystem metrics, Aave saw a 5.4% increase in liquidity on the platform. Between September 5 and 11, liquidity in the lending protocol increased to $10.8 billion from $10.3 billion recorded between August 29 and September 4.

Additionally, the total revenue made between September 5 and 11 was $3.5 million. This represents a 28.1% rally in total revenue from the $2.7 million recorded as a total between August 29th and September 4th.

During the period under review, wrapped Ethereum (WETH) was the most used asset class in the lending protocol. He led other assets with a utilization rate of 67.7%. This was a 16% jump in the utilization rate from the 58.4% recorded in the same period.

Of all the assets listed on Aave, WETH generated the most revenue in the period under review. It was followed by USDC, which posted a total revenue of $722,000 between September 5 and 11. With a 32.7% share, USDC holds the highest share of balance deposits per token on Aave.

Source: Messari

What about AAVE?

According to data from CoinMarketCap, the protocol’s native token managed a 3% increase in price during the period under review. As of this writing, AAVE traded hands at $91.22. The price per AAVE has decreased by 1% in the last seven days.

In the last 24 hours, the price of AAVE fell by 2%. However, data from CoinMarketCap revealed a significant rally in trading volume over the same period.

It was up 66% at press time. This kind of divergence between an asset’s price and its trading volume usually indicates an exhaustion of buyers. Hence, further price drop is imminent.

Leave a Comment