Aave is experiencing a decrease in unique users and transactions despite the growth in ETH. Still, interest in the token continues to grow.
According to recent data from Messari, the stETH pool on the Aave protocol was observed to become the largest deposit pool on the platform.
This growth was attributed to increasing interest in Ethereum stakes due to the upcoming upgrade in Shanghai.
The $stETH pool on #Ethereums @aaveAAVE V2 has become the largest deposit pool on the protocol.$stETH can be used as collateral but not borrowed on AAVE V2.
What has caused this recent increase? ⬇️ pic.twitter.com/6QWsKA4W9z
— Messari (@MessariCrypto) January 28, 2023
Read Aave’s Price Forecast 2023-2024
Growth in ETH deposits deployed over the past month has been significant. Despite this, the number of unique users on the Aave protocol has dropped.
It dropped by a whopping 35.3% in the past month and the number of transactions on the platform fell by 45.01% over the same period.
All about the yield
The decline in the number of users on Aave had a material impact on the revenue generated by the platform. According to data from the token terminal, revenue generated by Aave has fallen by as much as 45% over the past three months.
Source: token terminal
Aave token continues to rise
Despite this drop in revenue and number of users, interest in the Aave token has continued to grow. This can be seen in the surge in the percentage of large holders accumulating Aave, as well as a noticeable increase in the speed of the Aave token.
This increase in speed suggests that the frequency with which Aave is exchanged between addresses has increased over the past month.
How much are 1,10,100 Aaves worth today
However, Aave’s network growth continued to decline during this period. It somewhat suggested that new addresses were not attracted to the Aave token at the time of writing.
Source: Sentiment
While the protocol may see a huge drop in revenue, the increasing investor interest in the Aave token may be a reason to smile. At the time of writing, the Aave token was trading at $85.95 and the price is down 1.86% in the past 24 hours.
Despite this dip, the growth in user interest and deployment of ETH deposits shows that Aave remains a promising investment for users seeking exposure to the growing DeFi space.
This post The future of AAVE in limbo? Here are Aave updates you missed
was published first on https://ambcrypto.com/aaves-future-in-limbo-here-are-aave-updates-you-have-been-missing-out-on/
