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AAVE’s future in limbo? Here are Aave updates you have been missing out on

2min Read
AAVE's future in limbo? Here are Aave updates you have been missing out on

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  • Aave experiences a decline in the number of unique users and transactions despite growth in staked ETH.
  • Even so, interest in the token continues to increase.

According to recent data by Messari, it was observed that the stETH pool on the Aave protocol became the largest deposit pool on the platform.

This growth was attributed to the rising interest in staked Ethereum due to the upcoming Shanghai upgrade.


Read Aave’s Price Prediction 2023-2024


The growth in staked ETH deposits over the last month was substantial. Despite this, the number of unique users on the Aave protocol has seen a decline.

It fell by a significant 35.3% over the last month and the number of transactions on the platform decreased by 45.01% during the same period.

All about the revenue

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, the revenue generated by Aave has fallen by a staggering 45% over the last three months.

Source: token terminal

Aave token continues to rise

Despite this decline in revenue and the number of users, the interest in the Aave token has continued to grow. This can be seen through the sharp uptick in the percentage of large holders accumulating Aave, as well as a noticeable increase in the velocity of the Aave token.

This increase in velocity suggests that the frequency with which Aave is being exchanged between addresses has increased over the last month.


How much are 1,10,100 Aave’s worth today


However, Aave’s network growth continued to decline during this period. It somewhat suggested that new addresses weren’t attracted to the Aave token at the time of writing.

Source: Santiment

Even though the protocol may be seeing a massive decline in terms of revenue, investors’ increasing interest in the Aave token could be a reason to smile. At the time of writing, the Aave token was trading at $85.95 and its price decreased by 1.86% in the last 24 hours.

Despite this dip, growth in users’ interest and staked ETH deposits show Aave remains a promising investment for users who want to get exposed to the growing DeFi space.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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