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  • šŸ„› Can AAVE 5x again after its 2024 run? šŸ“ˆ

šŸ„› Can AAVE 5x again after its 2024 run? šŸ“ˆ

Aaveā€™s made some changes ā€“ hereā€™s whatā€™s ahead! šŸ—ŗļø

GM, this is Milk Road PRO ā€“ the ā€˜Uber Eatsā€™ of crypto alpha. 

(*Ding dong* your order has arrived!)

The crypto market may have hit some bumps, but innovation hasnā€™t slowed downā€”especially at Aave.

As one of the leading DeFi projects, Aave has kept pushing forward, delivering major updates and developments last month.

Hereā€™s a roundup of the latest announcements:

  • A major proposal introduces a fee switch, new aTokens, and a tokenomics revampā€”boosting value for token holders.

  • Yield-bearing stablecoins like $sUSDe and $sUSDS now exceed $11B, and Aave is launching a savings product to tap into this demand.

  • RWA tokenization is booming, with $5B in tokenized treasuries. Horizon, built on Aave, unlocks institutional borrowing and drives revenue back into the ecosystem.

Combine all that with Aaveā€™s stablecoin setting new records, and itā€™s clear why this is our next deep-dive candidate.

Aaveā€™s stablecoin, $GHO, has been gaining momentum this year. Despite a sluggish market, it recently crossed 210 million in circulating supplyā€”proof of its growing demand.

Whatā€™s really going on here, and what does it mean for Aave holders?

Weā€™re just as eager to find out. Weā€™re diving deep into the latest developmentsā€”and bringing you all the insights.

Hereā€™s what weā€™re covering today:

  • How is Aave performing right now?

  • What impact will this new proposal have?

  • Why is Aave launching a new savings product?

  • Are institutions ready to embrace Aave?

  • Will $AAVE repeat its 5x from 2024?

P.S. - Weā€™re hosting our Monthly PRO Portfolio Update next week ā€” scroll to the bottom for more info. šŸ„› 

Letā€™s dive right inā€”thereā€™s a lot to go over!

P.P.S.: If you're not familiar with Aave, be sure to check out our first PRO report covering itā€” because we wonā€™t be diving into the basics here.

First, letā€™s set the stage with some context.

AAVE TODAY

Letā€™s start with a market update on Aaveā€”covering its market share, stablecoins growth and financials.

Most of us are familiar with Aaveā€”itā€™s the #1 lending and borrowing protocol in crypto. 

  • Want to earn yield on your assets? Use Aave. 

  • Need to borrow stablecoins? Aaveā€™s got you covered. 

But is it really that simple for everyone in the market when choosing where to lend or borrow? Letā€™s take a closer look.

Since 2024, Aave's market share has been on the rise, now hitting an impressive 67%. 

āœ… Yes, people prefer Aave over many other platformsā€”and for good reason.

Their product is solid, but itā€™s not necessarily unique. So, whatā€™s driving their dominance? 

1ļøāƒ£ A big reason for Aaveā€™s success is the strong brand and trust it has built over the years. After all, you wouldnā€™t lend your money somewhere risky if it meant losing sleep at night, right?

But thatā€™s not the only factor.

2ļøāƒ£ Aave has rapidly expanded to new blockchains, securing its dominance.

Hereā€™s how Aaveā€™s user base is distributed across different chains.

Aave has over 10,000 active wallets each month, spread across five major blockchains. 

But here, weā€™re zooming in on a smaller slice of that group: the 20ā€“30% who actually borrow through Aave. Most users are just lending their crypto, not borrowing it.

šŸ‘‰ Donā€™t worryā€”weā€™ll explain later why borrowers are the ones to watch, and why this metric matters more than just looking at lenders.

Now, back to the chartā€¦ 

The message is pretty clear: when Base launched 1.5 years ago, they didnā€™t wait around. 

They moved fast to claim their spot and made sure rivals didnā€™t get a foothold.

And so far? That aggressive approach seems to be working.

That kind of growth doesnā€™t come without a price however. 

Aave is still handing out rewards to encourage specific actionsā€”like providing $AAVE liquidity or staking $AAVE to help secure the protocol. You can see exactly how much that costs in the chart, right alongside the revenue itā€™s generating.

Aave is still offering incentives worth millions of dollars per month. However, the key point here is that its revenue consistently outpaces its incentive costs, keeping them in a strong financial position.

For example, in February, Aave brought in $8.5M in revenue while spending $5.9M on incentives, netting around $2.6M in profit.

And if that doesnā€™t seem like a sturdy enough cushion, consider thisā€”Aave has $90M in its treasury, not even counting its $AAVE holdings, which add another $90M on top of that.

TL;DR: Aave is in a solid financial position. And if those big incentive numbers are still on your mindā€”donā€™t worry, weā€™ll dive into that at the end.

But before we move on, thereā€™s one more chart worth highlighting. Aaveā€™s own stablecoin, $GHO, has a supply that just keeps growing.

Just a year ago, there were only 40M $GHO in circulation. Today, that number has surged past 210Mā€”a 5x increase in just one year.

But what does a stablecoin have to do with Aaveā€™s lending and borrowing business?

They benefit a lot actually. Instead of relying on other people's money to lend out, they can just create and mint their own stablecoins. 

šŸ‘‰ This lets them cut out the ā€œmiddlemanā€ and keep all the interest payments for themselves ā€” boosting their profits big time.

Now that youā€™re up to speed on Aave and what theyā€™ve been doing, letā€™s dive into their latest announcements.

Uh, Ohā€¦ šŸ˜§ The rest of this report is exclusive to Milk Road PRO members!

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WHATā€™S LEFT INSIDE? šŸ‘€

  • What impact will this new proposal have?

  • Why is Aave launching a new savings product?

  • Are institutions ready to embrace Aave?

  • Will $AAVE repeat its 5x from 2024?

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