Aave treasury funds experienced significant growth. Other competitors also witnessed an increase in their treasury funds.
Decentralized lending protocol Aave [AAVE] has seen growth in its treasury funds, according to a Feb. 1 tweet from Delphi Digital. Treasury fund growth is an indicator of consistent revenue generation for the protocol, which can be used for various initiatives such as development, marketing, and strategic planning.
.@AaveAave has ~$143 million in his treasury:
– $120 million $AAVE
– $7 million $USDC
– $5 million $DAI
– $5 million $USDT
– $2 million $BALL
– $2 million $WETH
– $2M miscellaneous
– $739K $SHIB
– $631K $CRV pic.twitter.com/YNtSzJdcmw— Delphi Digital (@Delphi_Digital) February 1, 2023
Read Aave’s [AAVE] Price forecast 2023-2024
A strong and growing treasury can also provide stability and security to investors and stakeholders, which can increase confidence in the protocol and lead to increased demand for its tokens.
Aave is starting to give tough competition
Compared to its peers like BenQI and Compound, Aave’s treasury funds have grown significantly over the past three months.
However, other DEXes such as Uniswap [UNI] and MakerDAO [MKR] also experienced growth in this area.
According to Dune Analytics, Uniswap treasury funds have been rising in recent months despite the volatility seen in the crypto market. Similarly, MakerDAO weathered the storm and saw growth in terms of the assets held by the protocol.
MakerDAO’s treasury consisted mainly of stablecoins, which accounted for 59% of total assets. Despite this, MakerDAO’s Real World Assets (RWA) generated the most revenue for the protocol.
It remains to be seen whether MakerDAO will continue to increase its revenue and add value to its coffers.
Source: Dune analysis
Looking at the chips
Despite the growing funds of these protocols, the tokens failed to generate interest from new addresses.
According to data from Santiment, network growth declined for UNI, MKR and AAVE. UNI took a big hit in this area. However, AAVE outperformed the other protocols in this area, despite declining network growth.
Is your wallet green? Check out the Aave Profit Calculator
Source: Sentiment
In conclusion, Aave’s growing treasury fund is a positive sign for the protocol as it shows consistent revenue generation and provides investors with stability and certainty. The growth, compared to competitors such as Uniswap and MakerDAO, highlighted its financial strength.
However, the decline in network growth for all three protocols showed a lack of interest from new addresses. This could be a potential roadblock in the future growth and adoption of these protocols and their tokens. Nevertheless, the large treasury funds of these protocols could fuel the growth of their respective ecosystems.
This post How Aave’s treasury will help it rise above MakerDAO and Uniswap
was published first on https://ambcrypto.com/how-aave-treasury-will-help-it-rise-above-makerdao-and-uniswap/
