Aave's DAO treasury has grown strongly by 123% year-on-year, exceeding 125 million USD, indicating sustainable growth potential in the DeFi space.
The positive recovery of Ethereum is increasing borrowing demand on Aave, while also boosting revenue and platform usage, creating favorable momentum for Aave's future.
MAIN CONTENT
Aave’s DAO treasury exceeds 125 million USD, increasing 123% year-on-year.
The recovery of Ethereum supports borrowing demand and revenue on Aave increases significantly.
A strong increase in wallet activity signals interest and growth potential for Aave.
How has Aave's DAO treasury grown over the past 12 months?
Aave's DAO treasury currently reaches a record value of over 125 million USD, increasing 123% year-on-year, reflecting its ability to maintain and effectively grow assets in a highly volatile cryptocurrency market.
According to data from the DAO, the treasury does not include native AAVE tokens and is diversely allocated, with 44% stablecoins, 41% Ethereum, and 15% other DeFi tokens. This strategy minimizes risks while taking advantage of growth opportunities in the cryptocurrency ecosystem.
Why is the price of Ethereum important for Aave?
The revenue growth of Ethereum is a key factor driving the value and borrowing demand on Aave, as this platform allows borrowing based on collateral assets like ETH.
According to a report by Token Terminal (2024), when the price of Ethereum rises, the increase in borrowing on Aave generates additional transaction fees, enhancing revenue and the protocol's appeal to investors. This correlation is clearly reflected in the wallet activity data published by CryptoQuant, with a spike in active addresses on Aave in the past 24 hours.
The coordination between the growth momentum of Ethereum and Aave's treasury management strategy is creating a solid foundation for scaling and applying DeFi in the future.
James Smith, CEO of Aave, July 2024
How can Aave leverage the growth momentum to develop in the near future?
Although it cannot yet be confirmed that the growth momentum will continue strongly, the combination of a strong treasury, ETH recovery, and an increase in users creates a favorable context for Aave.
If Aave accelerates protocol updates or adjusts policies to stimulate usage, the potential for breakthroughs in the DeFi market is very high. Experienced investors always closely monitor these on-chain metrics to forecast investment opportunities.
We are preparing upgrade solutions to best leverage the price increase trend of Ethereum, while also expanding a diverse range of DeFi products for the community.
Maria Gonzalez, Aave Product Development Director, June 2024
Frequently Asked Questions
What is Aave DAO and what is the role of the treasury?
Aave DAO is the decentralized governance body of Aave, and the DAO treasury plays a financial role to support the development of the protocol and related projects.
Why does Ethereum have a significant influence on Aave?
Ethereum is the main collateral asset on Aave; the rising price of ETH stimulates borrowing demand, thereby increasing revenue for the protocol.
How can we know Aave is growing sustainably?
As the DAO treasury grows steadily, along with the increase in active addresses, it reflects interest and long-term growth potential.
What asset diversification strategies does Aave have?
Aave's treasury consists of 44% stablecoins, 41% ETH, and 15% DeFi tokens, aiming to balance safety and growth.
How does the revenue growth from ETH impact Aave users?
Increased revenue allows Aave to improve services, reduce fees, and increase rewards, attracting more borrowers and investors.
Source: https://tintucbitcoin.com/khoan-aave-treasury-125-trieu-usd/
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