Thinking of ‘Ghost’ing AAVE? You may want to read this before making a decision

• Aave’s TVL continues to decline along with the fees and revenue generated
• Whales and large investors continue to show interest in Aave, with a surge in the number of daily active addresses

The Aave protocol witnessed a significant surge in the number of active borrows over the last few months. This was reported by the leading crypto analytics firm, Messari. Furthermore, it was also observed that Aave was performing better than its competitors, such as Optimism and other alt L1s in this sector.

Active borrows on @AaaveAave V3 have been #UpOnly on @arbitrum over the last 30D compared to select alt-L1s and competing L2s like @OptimismFND.

This suggests that Arbitrum's economy is expanding despite not having a liquidity mining program, signaling organic growth. pic.twitter.com/wiuSzf9RhB

— Messari (@MessariCrypto) November 8, 2022

Read Aave’s [AAVE] Price Prediction 2023-2024

Doing better than ‘AAVE’rage

As can be seen from the chart given below, AAVE’s number of active borrows witnessed a massive spike over October. This uptick in active borrows suggested that Arbitrum’s economy was witnessing growth. This protocol witnessed this growth despite the absence of a liquidity mining program, thus signaling organic growth.

Source: Messari

Although there was a spike in active borrows, the same couldn’t be said about Aave’s total value locked (TVL). Its TVL observed a gradual declining over the past few months. Additionally, it went from 6.19 billion in September to $4.7 billion at the time of writing according to data provided by DeFiLlama.

The fees and revenue collected by Aave also decreased over the past month. Furthermore, the fees and revenue generated by Aave also declined in the last 30 days. At the time of writing, the fees and revenue collected by Aave in the last 24 hours stood at $209,282 and $28,581 respectively.

Source: DeFiLlama

Alas some hope! Maybe not…

As per data from Santiment, the number of active addresses on the Aave network witnessed an uptick. Furthermore, the daily activity increased tremendously in the month of October. 

Unlike the daily active addresses on the Aave network, Aave’s development activity declined over the past few weeks. This would indicate that the number of contributions being made by developers on Aave’s GitHub had decreased.

The declining development activity did not faze large investors. However, interest from large investors witnessed a spike. Furthermore, the supply held by top addresses also increased over the past few weeks. 

Source: Santiment

Despite these positive indicators, the price of Aave continued to decline. At the time of writing, AAVE was trading at $67.35 and its price had depreciated by 18.64% in the last 24 hours according to CoinMarketCap.

However, its volume increased by 33% during the same period and at press time, Aave captured 0.11% of the overall crypto market.