Aave’s partnership with Lemon App could help expand its user base. The launch of V3 generated interest, but the token’s speed and network growth slowed.
A new partnership could allow more than 1.7 million users from Argentina and Brazil to access Aave [AAVE] and provide liquidity to the platform. This could help increase the declining number of unique users on the platform. However, this new partnership alone may not be enough to completely revive both the protocol and the associated token.
The highly anticipated V3 launch on the Ethereum mainnet AIP was created by the community and is now live. V3 is the major upgrade of the Aave protocol and ETH is the first and largest market of Aave.👻
Read📚, vote🗳️ and discuss 💬 here: https://t.co/9lVZseiAHM
— Aave (@AaveAave) January 23, 2023
Read Lidos [LDO] Price forecast 2023-2024
According to Messari, the number of unique users on the Aave protocol has dropped 25.16% in the past month. Aave’s partnership with Lemon App could help increase this number and drive growth, but it’s important to note that the drop in unique users is likely a symptom of deeper issues within the protocol.
Much is at stake
One possible reason for the current decline in the protocol’s user base could be declining staking rewards, which have dropped significantly in recent months, according to Dune Analytics.
Aave’s TVL also fell last month, from $5.4 billion to $3.7 billion. However, the launch of Aave’s V3 on the Ethereum [ETH] mainnet could help improve the protocol’s TVL in the future.
Whale watching AAVE
The launch of V3 was a big development for Aave as the token sparked interest from whales. According to Santiment, the percentage of large addresses with AAVE has grown tremendously over the past week. This could imply a renewed interest in the protocol, but it is important to note that this alone is not enough to drive sustainable growth.
Realistic or not, here is Aave’s market cap in terms of BTC
In addition, the token’s speed decreased, suggesting that AAVE was not being transferred and was instead being held by addresses. However, the token’s network growth slowed, suggesting a lack of interest from new addresses.
Overall, the new partnership with Lemon App could attract new users to the protocol, but it may not be enough to completely revive the protocol. Aave will need to address the underlying issues causing the decline in unique users, staking rewards, and TVL.
The price of AAVE at the time of writing was $85.94 and is up 1.60% in the past 24 hours, according to CoinMarketCap.
This post Aave gains access to new users through this upgrade, but is it enough
was published first on https://ambcrypto.com/aave-gets-access-to-new-users-through-this-upgrade-but-is-it-enough/