Despite growth, AAVE could still face these growth hurdles in Q4 2022

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  • Aave out­per­formed Mak­er­DAO in terms of new users but lagged in volume
  • Despite show­ing growth over the year, its TVL and rev­enue col­lect­ed con­tin­ued to decline

Accord­ing to new data by Dune Ana­lyt­ics, Aave showed sig­nif­i­cant growth over the last few quar­ters. This was because the num­ber of Aave users wit­nessed an increase. How­ev­er, in terms of vol­ume, the pro­to­col lagged behind Mak­er­DAO, which had dom­i­nat­ed the mar­ket thus far. 


Read Aave’s [AAVE] price pre­dic­tion 2022–2023


Regard­less, Aave grew in 2022, and ranked sec­ond in terms of trans­ac­tion vol­ume at the time of writ­ing. It had reg­is­tered over $559 mil­lion in trans­ac­tion vol­ume over the last sev­en days.

Facing the competition

As can be seen from the image below, the num­ber of users on Aave were far greater than any oth­er DeFi pro­to­col. Aave stood with almost 10x more users than Mak­er­DAO, fol­lowed by Com­pound in third place. Thus, it remains to be seen whether the pro­to­col can sus­tain this lev­el of growth next year.

Source: Dune Analytics

How­ev­er, despite show­ing improve­ments in the afore­men­tioned cri­te­ria, Aave’s TVL declined over the month and sat at $501.67 mil­lion at press time.

 Along­side this, the fees gen­er­at­ed by Aave dwin­dled by 10.2%in the last 30 days, as per token ter­mi­nal. Despite this, the num­ber of trans­ac­tions on Aave increased by 127%, accord­ing to Mes­sari

Source: DefiLla­ma

Aave activity on chain

AAVE’s activ­i­ty wit­nessed a sig­nif­i­cant decline in terms of on chain met­rics. Aave‘s dai­ly active address­es fell over the last few weeks. Its veloc­i­ty declined as well, sug­gest­ing that the fre­quen­cy at which AAVE was being exchanged amongst address­es had dropped.

Anoth­er con­cern­ing indi­ca­tor would be the slump in inter­est from large address­es, as the sup­ply held by top address­es decreased over the last few weeks.

Source: San­ti­ment

At the time of writ­ing, Aave was trad­ing at $63.93. Its price had gained by 0.40% in the last 24 hours, accord­ing to Coin­Mar­ket­Cap. How­ev­er, its vol­ume rose by 14% dur­ing the same period.



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