Aave (AAVE) is one of the fastest-growing protocols, rebuilding its value in the past three months. After a brief period of withdrawals, net deposits on Aave are back above $20B.
Aave Net Deposits Growth
The Aave protocol is also growing its value locked as crypto markets regained their positions. Aave total value locked (TVL) increased to $12.5B on its Ethereum version. On all chains and versions, TVL amounts to $20.53B. After the latest expansion, Aave surpassed EigenLayer, remaining the second most liquid DeFi hub after LidoDAO. The value is fragmented across a total of 13 chains, affecting user count and value locked. The recent boost to Aave metrics follows the rapid appreciation of the AAVE token, which outperformed Bitcoin (BTC) in the past months.
AAVE Price Growth Expectations
Aave established itself as the most reliable lending protocol on Ethereum, surpassing Curve and Sky (formerly Maker). The AAVE token climbed from outside the top 100 to position 37 with a total capitalization of $2.47B. During its most recent rally, AAVE reached $177 before retreating to $165.32. The asset is seen as potentially breaking out higher, as it has not yet left years of sideways trading. From 2025 onward, Aave will also start unlocking Ecosystem Reserve tokens. Only about 18% of AAVE tokens remain unlocked.
GHO Supply Growth
GHO, the Aave protocol stablecoin, may reach its $175M market cap threshold faster than expected. The token already has a supply of 150M, adding 62M tokens in the past three months. After reaching the 175M supply range, Aave will start buybacks to burn AAVE tokens. GHO exists in a complex structure of minting and burning to move coins to L2 chains. The abundance of GHO makes AAVE even more deflationary.
Aave continues to show significant growth driven by increasing user demand and successful development of its AAVE and GHO tokens. The platform holds its position confidently in the DeFi market and remains one of the leading platforms in lending.
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