Aave’s V3 deployment on Ethereum shows strong growth, thanks to…

  • The implementation of Aave V3 on Ethereum has seen increased deposits and loans since its launch.
  • The price of AAVE is falling as investors are not interested in the alternative.

Aave [AAVE] deployed its V3 iteration on the Ethereum network on January 27, attracting $257.08 million in deposits and $139.14 million in loans, data from the decentralized lending and borrowing protocol.

The Ethereum version of AAVE V3 has a lot to offer

At Ethereum’s launch, the V3 implementation consisted of only seven cryptocurrencies: DAI, USDC, AAVE, LINK, ETH, WBTC, and wsETH.

38 days later, the number of assets increased to 11 due to the addition of more assets such as LUSD, cbETH and rETH.

How many 1,10,100 AAVE worth today?

Of these assets, ETH supply remains the highest on Aave V3. As of this writing, 94,280 ETH coins worth over $147 million have been delivered to the protocol.

Of the total ETH provided by liquidity providers, 51,250 ETH have already been borrowed, making it the most popular asset borrowed on the protocol.

Source: Aave

At the time of writing, Ethereum’s AAVE V3 had a Total Value Locked (TVL) of $257 million, making Ethereum the second highest TVL chain for AAVE V3.

Although Ethereum is the newest chain with AAVE V3 iteration, its TVL exceeded that of Polygon, Optimism, Arbitrum, Fantom and Harmony, data from DefiLlama shown

Source: DefiLlama

Ethereum’s V3 implementation has helped Aave expand its TVL protocol over the past month, additional data from DefiLlama reveals. At $4.76 billion at press time, Aave’s TVL is up 3% since January 27.

Read it of Aave [AAVE] Price forecast 2023-2024

No gain, more pain

Influenced by the sideways movement of the overall market over the past month, AAVE’s price has fallen 15% over the past 30 days.

An on-chain assessment revealed a drop in network activity during this period. According to data from Sentimentthe number of daily active and new addresses involved in AAVE transactions has been on a downward trend over the past month.

Source: Santiment

As the price of the alternative fell, investor confidence quickly turned negative. At press time, the weighted AAVE sentiment was -0.237.

Since very few people expect price growth in the meantime, the supply of AAVE on exchanges has increased as many investors have started to divest their AAVE holdings.

Conversely, over the same period, AAVE’s OTC supply has fallen, indicating that more investors have been selling than holding.

Source: Santiment

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