- Aave and Compound skilled a decline in distinctive customers and month-to-month deposit quantity.
- Aave V3 noticed a spike in TVL lately, whereas Compound skilled a secure uptrend.
Aave [AAVE] and Compound, the dynamic duo of lending and borrowing platforms that helped pioneer the Decentralized Finance (DeFi) motion, weathered a yr of ups and downs. Regardless of dealing with what some could name a tumultuous time, how have these two powerhouses fared, significantly with the introduction of their extremely anticipated V3 releases?
Learn Aave (AAVE) Worth Prediction 2023-24
Deposits, customers fall on Aave and Compound
Primarily based on Kaiko’s data, each Aave and Compound skilled a constant lower within the variety of distinctive customers since Could 2022. Nevertheless, Compound’s decline was extra notable.
The one two months that confirmed a deviation from this pattern had been November 2022, which coincided with FTX’s collapse, and March 2023, when USDC’s de-pegging occurred.
In February 2023, consumer exercise hit a very low level, with Aave V2 receiving simply over 3,500 month-to-month customers and Compound V2 attracting 1,000.
Supply: Kaiko
The bear market had a noticeable influence on the month-to-month deposit quantity for each platforms. At first of 2022, Aave noticed a mean of $8 billion in month-to-month deposits. Nevertheless, in 2023, the typical dropped by half to round $4 billion.
The one exception to this pattern was March when the platform skilled a surge in deposit quantity. This was as a result of recognition of flash loans, a function the place tokens are deposited and withdrawn in the identical block.
These loans accounted for a staggering $10 billion in deposits in simply three days.
Aave and Compound’s V3 sees TVL respite
Based on DefiLlama’s knowledge, Aave V3 was on an upward pattern. Though the platform skilled a dip in October 2022, the Whole Worth Locked (TVL) resumed its ascent. As of this writing, the TVL stood at $1.3 billion, regardless of a pointy drop between 20 April and 23 April.
Supply: DefiLlama
In distinction to Aave, Compound skilled a comparatively secure uptrend when it comes to TVL, with the one important dip occurring in March. The platform’s TVL surged and stood at over $587 million.
Moreover, there was a constant circulation of stablecoins into the system, though outflow at the moment dominates.
Supply: DefiLlama
– How a lot are 1,10,100 COMPs value at the moment
30-day MVRV verify
Upon inspecting the 30-day Market Worth to Realized Worth (MVRV) of each Aave and Compound, some similarities in valuation emerged. As of this writing, Aave’s MVRV was -5%, whereas Compound’s MVRV was -6%.
The MVRV instructed that each tokens had been at the moment undervalued and will probably rise in worth. As well as, at press time AAVE was buying and selling at roughly $71, whereas COMP was exchanging palms at round $40, each at a lack of lower than 1%.
Supply: Santiment
