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



AAVE's future in limbo? Here are Aave updates you have been missing out on
Source: StockAI

  • 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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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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