– Aave ventures into the zkEVM space via the zkSync Era protocol.
– Despite rising prices, indicators point to a bearish future for AAVE.
Aaf [AAVE]a decentralized lending and lending protocol, has made major improvements to its protocol to survive in the highly competitive DeFi space.
In an April 14 tweet, the protocol said the board was making progress on several fronts, including entering the zkEVM space, Risk Stewards, and whitelisting new protocols.
a [Temp Check] is currently in progress to deploy Aave V3 on the @zksync Era Mainnet, expanding Aave’s presence and tapping into the growing zkEVM ecosystem.https://t.co/ps1RMl7Sva
— Aave (@AaveAave) April 14, 2023
Read Aave’s Price Forecast 2023-2024
Aave is set to enter the zkEVM space via the zkSync Era protocol after launching on zkSync’s V2 testnet. With the release of zkSync Era Mainnet, the protocol can now capitalize on previous development efforts, making it a central hub for mainnet activity and liquidity.
The motivation behind the decision to launch on zkSync is to attract more users to the protocol. It also wants to be seen as the most important lending platform within the growing zk ecosystem.
Aave is also set to whitelist the liquidity transport protocol Stargate on its ecosystem. This enables users to reliably and securely access assets across chains.
In terms of governance, the Aave Protocol has proposed a 2-month trial of shielded voting. Shielded voting is a mechanism that allows voters to keep their votes private during the voting process, with their choices and results not revealed until after the vote has ended.
The current state of Aave
The health of the protocol continued to deteriorate, even with the work being done to make improvements.
According to data from Token Terminal, fees collected by the network are down 17.7% over the past month. In addition, the number of active developers working on the protocol dropped by 35% over the same period.
A decrease in the number of active developers suggests that new upgrades and updates may be taking longer than usual to go live.
Source: token terminal
Realistic or not, here is AAVE’s market cap in BTC terms
Should holders be concerned?
AAVE’s network growth started to slow down despite the token’s rising prices. This showed that new addresses were not as interested in the token. The speed also dropped significantly.
Rising prices also caused AAVE’s MVRV ratio to jump, implying a higher likelihood of a sell-off in the future.
Source: Sentiment
This post Aave’s foray into zkEVM space – Evaluating the heart of it all
was published first on https://ambcrypto.com/analyzing-how-aaves-foray-into-the-zkevm-space-will-pan-out/
