It’s interesting to see that Aave’s migration tool and impending stablecoin launch both exhibit growth potential.
This launch significantly increased Aave’s income and had a favorable impact on the v3 protocol.
The crucial numbers, however, highlight the effect Ethereum had on the money made through V3. Making the protocol therefore represented the third-highest daily revenue source after Avalanche ($1,907) and Polygon ($540).
The earnings of Arbitrum and Optimism, on the other hand, were lower at $180 and $148, respectively. Ethereum made up 11% of the overall V3 income during the first week of February, and it is anticipated that it will soon overtake both Avalanche and Polygon.
This demonstrates how Ethereum has the ability to significantly affect Aave’s income and the overall success of the V3 protocol.
The Aave mystery deepens
During this time, Aave also unveiled a migration tool in addition to the debut of Ethereum. This program made it simple for users to switch their money from Aave’s V2 to its V3 protocol.
Because it allowed users to access the most recent features of the protocol and upgrade to the most recent version, the migration tool significantly contributed to the increase of Aave’s income.
Aave made a wise strategic choice by releasing the migration tool, which helped the network draw in new users and keep existing ones.
The imminent release of Aave’s stablecoin, GHO, is another means to raise awareness of its technology.
Aave’s revenue might increase as a result of the introduction of GHO by attracting a new user base. Additionally, it may provide Aave a distinct competitive advantage and enable it to differentiate itself from rivals.
Notably, Aave’s TVL also increased throughout this era of renovations. This increase in TVL shows how well-liked Aave’s V3 protocol is and how strongly people believe in the platform.
The decrease of Aave wallets on Polygon and Optimism, however, may be cause for concern because it might have a detrimental effect on the system.
Result for the token
Even though the protocol showed signs of progress, the Aave token couldn’t be deemed to have done so.
The token’s velocity has stopped increasing, which shows a fall in the volume of transactions utilizing Aave.
In addition, when network expansion slowed, new addresses have begun to lose interest in Aave. This can be due to a lack of interest in what the protocol has to offer.
Whale interest in the coin has increased despite these difficulties.
Whales frequently seek for opportunities to invest in tokens with significant room for growth, thus recent Aave developments may have caught their attention.