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Aave V3 Sees $26M Deposits and $6M Loans after Last Friday Launch


coinedition.com 29 January 2023 12:02, UTC
Reading time: ~2 m

According to an official tracking website, the recently launched version three of the decentralized finance lending protocol, Aave V3 (AAVE), has attracted $26.10 million in deposits and $6.66 million in loans.

However, the figure is much below Aave’s version two, which has attracted over $5.48 billion in deposits and $1.7 billion in loans. Notably, the most loaned coins on the Aave V3 and V2 via the Ethereum network were stablecoins BUSD, USDC, and DAI.

According to data from Delphi Digital, an Institutional grade crypto research firm, the crypto loan utilization rates for prominent collateral types like USDC on the crypto lending protocol, Aave, declined significantly in 2022.

Last month, Delphi Digital published a year-to-date (YTD) graph illustrating how the utilization rates for the Ethereum USD (ETHUSD) pair and that of USDC fell continuously from over 80% in December 2021 to nearly below 20% in December 2022.

Utilization rates for prominent collateral types like $USDC on @AaveAave have declined significantly this year. pic.twitter.com/BcAu5zPTHO

— Delphi Digital (@Delphi_Digital) December 30, 2022

Notably, the utilization rate represents how much of a pool has been loaned out compared to available liquidity. For example, a pool with $1,000 of USDC where $800 of those USDC have been borrowed represents a utilization rate of 80%.

According to CoinMarketCap, Aave’s native token ranks as the eighth largest coin in the DeFi ecosystem, with a market cap of over $1.2 billion. It currently trades at $85.58 after falling 87% from its all-time high of $666.86 in May 2021. In the last 24 hours, crypto traders bought and sold $80 million worth of Aave tokens.

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