- Aave’s partnership with Lemon App can help expand its user base.
- The launch of the V3 sparked interest, but the token speed and network growth slowed.
Thanks to a new collaboration, more than 1.7 million users from Argentina and Brazil have gained access to Aave [AAVE] And adding liquidity to the platform. This can help increase the dwindling number of unique users on the platform. But this new partnership alone may not be enough to fully revive the protocol and its symbol.
The long-awaited V3 release on the Ethereum mainnet AIP was created by the community and is now live. V3 is Aave’s most important protocol upgrade, and ETH is Aave’s first and largest market
Read 📚, vote 🗳️ and discuss here 💬: https://t.co/9lVZseiAHM
– Aave (AaveAave) January 23, 2023
Read Lido’s [LDO] Price forecast 2023-2024
According to Messari, the number of unique users on the Aave protocol has decreased by 25.16% in the past month. Aave’s partnership with Lemon App could help increase that number and spur growth, but it’s important to note that the drop in unique users is likely a symptom of deeper problems within the protocol.
Much is at stake
One possible reason for the current decline in the number of users on the protocol could be the drop in betting bonuses, which have dropped dramatically in recent months, according to Dune Analytics.
Aave’s TVL also fell last month, from $5.4 billion to $3.7 billion. However, the launch of Aaves V3 on Ethereum [ETH] mainnet can help improve the protocol’s TVL in the near future.
Valar seeks AAVE
The launch of V3 was a major development for Aave as the token sparked interest from whales. According to Santiment, the proportion of large titles with AAVE has increased significantly in the past week. This may mean renewed interest in the protocol, but it is important to note that this alone may not be enough to drive sustainable growth.
Realistic or not, this is the market cap of Aaves in BTC terms
In addition, the rate of tokens decreased, indicating that AAVE was not sent but held by addresses. However, the growth of the token network has slowed, indicating a lack of interest in new addresses.
Overall, the new partnership with Lemon App may bring new users to the protocol, but it may not be enough to fully revive the protocol. Aave will need to address the underlying issues causing unique user counts, equity rewards and TVL to decline.
AAVE price at the time of writing was $85.94, up 1.60% in the last 24 hours, according to CoinMarketCap.