• Aave’s partnership with Lemon App could help increase its declining user base.
• The launch of V3 on the Ethereum [ETH] mainnet could help improve the protocol’s TVL in the coming future.
• Whales have sought out AAVE since the launch of V3, potentially signaling future growth of the protocol.
Aave, a lending platform for cryptocurrencies, has seen a decline in its user base and token velocity over the past month. V3, the most significant upgrade to the Aave Protocol, was recently launched on the Ethereum mainnet, generating interest from whales. In a bid to increase its user base, Aave has now partnered with Lemon App, which could give 1.7 million users from Argentina and Brazil access to Aave [AAVE].
The decline in the number of unique users on Aave is likely a symptom of deeper issues within the protocol, such as the lessening of staking rewards. According to Dune Analytics, the total value locked (TVL) has also decreased over the past month, going from $5.4 billion to $3.7 billion.
However, the launch of V3 on the Ethereum [ETH] mainnet could help improve the protocol’s TVL in the coming future. Aave’s partnership with Lemon App could also help increase its user base, and potentially lead to further network growth and token velocity. The whales seeking out AAVE since the launch of V3 could be a sign of future growth of the protocol.
It is yet to be seen if the partnership with Lemon App and the launch of V3 will be enough to revive both the protocol and its token. However, it is certainly a step in the right direction, and could bring about much-needed growth for Aave.
