Friday, February 23, 2024
HomeCryptocurrenciesAltcoinsAave Expands to L1s and L2s in Aggressive Expansion Mode

Aave Expands to L1s and L2s in Aggressive Expansion Mode

Aave, the DeFi lending and borrowing protocol, has been experiencing steady growth since the beginning of 2023. As per Token Terminal, the total value locked (TVL) for March increased by 10% from the previous month and 18% from January. With the ecosystem’s aggressive expansion mode, Aave is targeting Layer 1 and Layer 2 blockchains.

AAVE Token Shows Impressive YTD Growth

The AAVE governance token has shown remarkable year-to-date (YTD) growth, reaching a 42% increase. According to CoinMarketCap, it experienced a weekly expansion of over 10%. This indicates that investors are bullish on the Aave ecosystem.

Deploying Aave V3 on Binance’s BNB Chain

Mark Zeller, the founder of the AaveChan Initiative and an active participant in Aave’s governance, proposed deploying Aave Version 3 (V3) on Binance’s BNB Chain. The proposal was based on the chain’s large user base and growing DeFi ecosystem, which could help Aave generate additional revenue. At the time of writing, stakeholders unanimously supported the plan.

AAVE

Branching Out to Layer-2 Blockchains

Aside from Binance’s BNB Chain, Aave is also planning to deploy V3 on the zero-knowledge rollup (Zk-rollup), Starknet. Phase-2 will mark the full deployment of V3 on Starknet after the successful completion of phase-1. The proposal received a 99.99% vote in favor of it from the Aave community.

Concerns Regarding Aave’s Key Performance Indicators

Despite Aave’s expansion plans, its key performance indicators showed a decline. The revenue in the last week of March dropped to $250.5k, an 8% decrease from the previous week. Additionally, the weekly average daily active users dropped by as much as 44% since the beginning of March.

Conclusion

Aave’s aggressive expansion mode targets both Layer 1 and Layer 2 blockchains, highlighting its commitment to growth and innovation. While concerns regarding its key performance indicators exist, the recent support for deploying V3 on Binance’s BNB Chain and the overwhelming approval for phase-2 deployment on Starknet indicate a bright future for Aave. Investors remain bullish, as shown by the impressive YTD growth of the AAVE governance token.

What’s your Reaction?
+1
0
+1
0
+1
0
+1
0
+1
0
+1
0

Disclaimer: The information provided on coinvinance.biz is for educational and informational purposes only and should not be construed as financial advice. Coinvinance.biz does not provide any investment advice or recommendations. Any investment decision you make is solely your responsibility. Please conduct your own research and consult with a licensed financial advisor before making any investment decisions. Coinvinance.biz is not responsible for any financial losses that may result from your use of the information provided on this website.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -spot_imgspot_imgspot_imgspot_img

Most Popular

Recent Comments