The arrival of AAVE V3 was expected in the crypto space due to the barrage of improvements it introduced.

But due to the ongoing bear market that has followed since launch, growth has not been on par.

AAVE V3 has yet to get publicity

Notably, V2 was launched in December 2020. After all the ups and downs, the total value locked on the Decentralized Finance (DeFi) protocol currently stands at $5.87 billion.

Compared to that, V3 does much better. In just five months, it has achieved a TVL of $1.59 billion. At this rate, V3 would be valued at over $8 billion within 20 months.

While V2 has suffered the most from the bears, it has fallen from a TVL of $18 billion.

AAVE V2 TVL | Source: DeFi Llama – AMBCrypto

However, despite the slow growth, the launch of Optimism rewards on the network boosted user performance.

As a result, the TVL also recorded an increase in its value, as it rose more than 24% in the past two weeks.

On-chain analysis shows that the market situation for the borrowed assets on V3 has risen significantly. Most of the loan amount will be spread over just five coins.

WMATIC, WETH, USDT, USDC and DAI dominate the V3 market. In the V2 market, CRV replaced USDT, while the rest of the assets there also dominated the space.

AAVE V3 Loans | Source: Dune – AMBCrypto

In particular, WBTC had a higher dominance in deposits. But in the past week it was acquired by USDC, which is currently the most deposited asset and also has the largest offering on the protocol.

However, the users of V3 are stable when it comes to borrowing and repaying the protocol.

Growing at a rapid pace, this month the number of loans and repayments together exceeded $100 million.

AAVE lends/repays | Source: Dune – AMBCrypto

So it may take a while for V3 to match the level of V2 in volume. But interestingly, when it comes to usage, V3 already outshines V2.

This post The story of AAVE V3 and the mild success you don’t know

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