Let's talk about a few key targets I'm currently focusing on.
01｜ $AAVE
Based on the performance over the past 90 days, $AAVE has increased by around 120%, significantly outperforming other lending protocols: $COMP, $MORPHO, etc. This trend reflects a further consolidation of its dominant position in the market structure.
The data is honest, let's take a look at some numbers.
TVL has reached a new all-time high of $45.6B, with a YTD growth of 32.6%, exceeding the total of the next 30 lending protocols combined.
Active loans amount to $18.2B, making up 62.8% of the entire lending market. The protocol's annual revenue is $603M, accounting for 63% of the sector, showing a clear head effect.
From a valuation perspective, the FDV/annual revenue is around 7.6x, which I personally consider to be a relatively reasonable range. On one hand, the revenue is solid; on the other hand, the updates from V4 and the umbrella module do indeed have the potential to further enhance efficiency and security.
Let's discuss the key updates:
The V4 architecture is being advanced, adopting a “Hub-and-Spoke” model to unify liquidity and connect funds from different markets into a centralized pool, improving capital utilization and facilitating multi-chain deployment in the future.
At the same time, V3 has been deployed on Aptos, marking Aave's first expansion to a non-EVM chain, which is quite crucial as it indicates an active pursuit of multi-chain benefits.
The stablecoin $GHO has also gone live on Avalanche.
There is another update that I think is easily overlooked but is very crucial: the “Umbrella Module.”
Simply put, it allows aToken to be staked, earning additional yields while participating in building the protocol's security buffer pool,
and it can control emissions in smarter ways, reducing inflation, which is a substantial benefit for token holders.
To summarize, in my understanding, protocols like $$AAVE that continue to update and have revenue will become increasingly valuable with each market switch.
