AAVE outperforms LDO as DeFi TVL reaches YTD high, more inside

Please fol­low and like us:
Pin Share

  • Aave record­ed the most asset deposits in its protocol.
  • Though Lido under­per­formed, its TVL hit 2023 highs.

The Total Val­ue Locked of Aave [AAVE] gained as much as 8.69% in the week end­ed 25 March. The rise in unique smart con­tract deposits made the pro­to­col the best-per­form­ing one as the over­all TVL hit $5o.01 bil­lion — a Year-To-Date (YTD) high. How­ev­er, the TVL fell to $49.42 bil­lion at press time


How much are 1,10,100 AAVEs worth today?


The TVL con­sid­ers fac­tors like the cir­cu­lat­ing sup­ply, asset locked, as well as user inter­est in a pro­to­col to mea­sure the protocol’s health. So, Aave’s hike implied that many par­tic­i­pants in the last sev­en days looked in the lend­ing and bor­row­ing direction.

Aave Total Value Locked

Source: DeFi Llama

Aave takes the week and triumphs

Lido Finance [LDO] dom­i­nat­ed the space for sev­er­al weeks before Aave took over. Although the liq­uid stak­ing pro­to­col main­tained its stay as the project with the high­est TVL, it did not per­form well enough to place sec­ond-fid­dle to Aave. Accord­ing to DeFi Lla­ma, Lido’s per­for­mance over the week yield­ed a less than 1% hike.

How­ev­er, this does not take away Lido’s posi­tion as the project which has accom­mo­dat­ed the most staked Ether [stETH] ready to be unlocked on 12 April when the Ethereum’s [ETH] Shang­hai upgrade takes place. 

Aave, on the oth­er hand, may not boast of such, but its rise in pop­u­lar­i­ty could also be due to Ethereum’s impact. With a $4.82 bil­lion life­time con­tri­bu­tion, Ethereum has helped Aave record a sub­stan­tial num­ber in fees and revenue.

Mean­while, the non-cus­to­di­al liq­uid­i­ty pro­to­cols have not expe­ri­enced sig­nif­i­cant strides regard­ing devel­op­ments. As of 23 March, devel­op­ment activ­i­ty reached a year­ly low of 3.792.

A detailed under­stand­ing of the met­ric points to fea­ture upgrades, and pub­lic com­mit­ment by the project’s devel­op­ers to improve prod­ucts under the blockchain. 

But at press time, there has been some recov­ery as the met­ric improved to 4.31. This implies that the devel­op­ers’ activ­i­ty con­tri­bu­tion has been notably restored.

NFT volume rises as…

In addi­tion to the TVL increase, NFT sales on the Aave net­work were also impres­sive over the week. Accord­ing to San­ti­ment, the dig­i­tal col­lectibles vol­ume reached $16.05 mil­lion on 20 March. Although it was reduced after­wards, most of the dai­ly sales sur­passed those of the pre­vi­ous week.

Aave development activity and NFT volume

Source: San­ti­ment


Is your port­fo­lio green? Check the Aave Prof­it Calculator


Fur­ther­more, Aave’s activ­i­ties dur­ing the week includ­ed play­ing its part in return­ing funds to those affect­ed by the Platy­pus exploit. The exploit hap­pened in Feb­ru­ary when a flashloan drained the Avalanche [AVAX]-based pro­to­col of $9 million.

Although it threat­ened the project’s sol­ven­cy, Aave’s gov­er­nance was able to help out as the right­ful own­ers got back their funds.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *