After falling into disuse during the bear market, decentralized finance (DeFi) protocols now seem to be attracting liquidity again, led by the Aave platform. First in terms of total value locked (TVL) in its sector, the Aave protocol and its eponymous token are once again in the spotlight.
Aave surpasses $11 billion TVL
The 3rd version of the popular decentralized finance (DeFi) protocol Aave recently approached 12 billion in total value locked (TVL), with more than $10 billion on Ethereum alone. Aave V3 now appears to be stabilizing at $11 billion TVL.
Aave V3 Total Value Locked (TVL)
At the start of 2024, the TVL of Aave V3 stood at $4.3 billion. The increase in TVL to $11 billion thus represents a significant increase of more than 155%..
👉 How to buy AAVE tokens in 2024?
The platform’s daily volumes are also increasing since the start of the year. They reached $410 million on Monday:
Daily volumes on the Aave platform
As the graph above shows, daily volumes have increased significantly since the beginning of August.
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The improvements that V3 brings to older versions
Beyond the current renewed interest in decentralized finance potentially caused by recent changes in monetary policy, the 3rd version of the Aave protocol has several key improvements compared to previous versions:
- Interoperability between different blockchains;
- New security settings;
- More attractive returns.
Additionally, a proposal from Marc Zeller, the founder of the Aave Chan Initiative (ACI), was recently voted on. In a few words, this proposal aims, among other things, to redistribute protocol revenues to AAVE token holders and to establish new security mechanisms.
👉 What is the AAVE protocol? Our complete sheet
Since this news, the AAVE token has outperformed the crypto market by recording an increase of 93% over the last 3 months. The price of the AAVE token is currently 150 dollars each.
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Sources: ChallengeLlama, Artemis Terminal
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Passionate about the blockchain ecosystem, I like to deepen my knowledge and share my discoveries. In a perpetual quest to learn more about cryptos, I recently joined the Cryptoast Research team where I provide weekly fundamental analysis.
Theo Zananiri
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