- The utilisation of AAVE protocol noted its six months low in Q1 and Q2 of this year.
- AAVE’s upcoming launching of Stablecoin GHO and lens protocol may increase revenue.
The crypto research and data platform Messari released a report regarding AAVE protocol. The report includes the details of the firm, its revenue, and utilisation in the current quarter year. The report analysis shows that stablecoin noted its new six months low this year.
AAVE Utilisation Rate and Revenue Analysis
Messari’s research on the DeFi protocol, AAVE, shows a major decline in its revenue. AAVE suffers around 18% decline in quarterly revenue, as the demand in AAVE has been reduced. It may be caused by the implosion in the crypto world like Terra-LUNE collapse.
According to the report by Messari, “This is interesting because in the past stable coins made up 98% of Aave’s revenue but other markets have since filled up the decline in utilisation of stables.” It shows that the overall utilisation rate was untouched, and even hiked in the last quarter.
However, the reason which out from this report is the increased demand for ETH loans. The ETH loans require 32 ETH and short-exposure, and it works on a proof-of-stake mechanism. Also, ETH pays more yields on deposits as compared to the AAVE ethereum’s stablecoins.
The crypto lender Celsius was also a part of the loss in AAVE revenue. In July, Celsius reportedly withdrew “a third of all of AAVE’s stETH deposits.” It resulted in drops of the utilisation of stablecoins in AAVE.
Furthermore, the research report also tends towards the launching of three new products by AAVE. The report suggests it will help in getting over from low stable coin utilisation, as previously DeFi protocol increased its AAVE V3. AAVE recently announced the launch of stablecoin GHO and lens protocol, because most of its revenue from the last six months was generated by stablecoins.
It also must be noted that the current price of AAVE is resting at $110.68 USD with a note up by 2.63% from the last 24 hours.
Source: https://www.thecoinrepublic.com/2022/08/17/aave-utilisation-drop-down-at-its-recorded-low/