- The implementation of Aave V3 on Ethereum has led to more deposits and loans since its launch.
- The price of AAVE falls as investors show no interest in the alt.
Aaf [AAVE] deployed its V3 iteration on the Ethereum network on January 27, attracting $257.08 million in deposits and $139.14 million in loans, facts the decentralized lending and lending protocol showed.
The Ethereum version of AAVE V3 has something to offer
When launched on Ethereum, the V3 implementation consisted of just seven cryptocurrencies: DAI, USDC, AAVE, LINK, ETH, WBTC, and wsETH.
38 days later, the number of assets has increased to 11 due to the addition of more assets, such as LUSD, cbETH and rETH.
How much are 1,10,100 AAVEs worth today?
Of these assets, the supply of ETH remains the highest at Aave V3. At the time of writing, 94,280 ETH coins worth more than $147 million have been delivered to the protocol.
Of the total ETH provided by liquidity providers, 51,250 ETH has already been borrowed, making it the most popular asset to be borrowed under the protocol.
Source: Ava
At the time of writing, AAVE V3 on Ethereum had a total locked value (TVL) of $257 million, making Ethereum the second chain with the highest TVL for AAVE V3.
Despite Ethereum being the latest chain with the AAVE V3 iteration, the TVL has surpassed that of Polygon, Optimism, Arbitrum, Fantom and Harmony, data from Defillama showed.
Source: DefiLlama
The V3 implementation on Ethereum has helped Aave grow its protocol TVL over the past month, according to further data from DefiLlama. At $4.76 billion at time of press, Aave’s TVL is up 3% since Jan. 27.
Read Aave’s [AAVE] Price forecast 2023-2024
No gain, more pain
Affected by the sideways movement of the general market over the past month, AAVE’s price is down 15% in the past 30 days.
The chain measurement showed that network activity decreased during that period. According to data from Santiment, the number of daily active and new addresses involved in AAVE transactions has been on a downward trend over the past month.
Source: Sentiment
As the price of the alt fell, investor confidence quickly turned negative. At the time of writing, AAVE’s weighted sentiment was -0.237.
With very few anticipating price increases in the meantime, the supply of AAVE on exchanges has risen as many investors have started dividing up their AAVE holdings.
Conversely, over the same period, off-exchange AAVE supply has fallen, indicating that investors sold more than they owned.
Source: Sentiment