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- š„ Can AAVE 5x again after its 2024 run? š
š„ Can AAVE 5x again after its 2024 run? š
Aaveās made some changes ā hereās whatās ahead! šŗļø

GM, this is Milk Road PRO ā the āUber Eatsā of crypto alpha.
(*Ding dong* your order has arrived!)
The crypto market may have hit some bumps, but innovation hasnāt slowed downāespecially at Aave.
As one of the leading DeFi projects, Aave has kept pushing forward, delivering major updates and developments last month.
Hereās a roundup of the latest announcements:
A major proposal introduces a fee switch, new aTokens, and a tokenomics revampāboosting 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 Aaveās stablecoin setting new records, and itās clear why this is our next deep-dive candidate.
Aaveās stablecoin, $GHO, has been gaining momentum this year. Despite a sluggish market, it recently crossed 210 million in circulating supplyāproof of its growing demand.
Whatās really going on here, and what does it mean for Aave holders?
Weāre just as eager to find out. Weāre diving deep into the latest developmentsāand bringing you all the insights.
Hereās what weāre 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. - Weāre hosting our Monthly PRO Portfolio Update next week ā scroll to the bottom for more info. š„
Letās dive right ināthereās 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 wonāt be diving into the basics here.
First, letās set the stage with some context.
AAVE TODAY
Letās start with a market update on Aaveācovering its market share, stablecoins growth and financials.
Most of us are familiar with Aaveāitās the #1 lending and borrowing protocol in crypto.
Want to earn yield on your assets? Use Aave.
Need to borrow stablecoins? Aaveās got you covered.
But is it really that simple for everyone in the market when choosing where to lend or borrow? Letās take a closer look.
Since 2024, Aave's market share has been on the rise, now hitting an impressive 67%.
ā Yes, people prefer Aave over many other platformsāand for good reason.
Their product is solid, but itās not necessarily unique. So, whatās driving their dominance?
1ļøā£ A big reason for Aaveās success is the strong brand and trust it has built over the years. After all, you wouldnāt lend your money somewhere risky if it meant losing sleep at night, right?
But thatās not the only factor.
2ļøā£ Aave has rapidly expanded to new blockchains, securing its dominance.
Hereās how Aaveās user base is distributed across different chains.
Aave has over 10,000 active wallets each month, spread across five major blockchains.
But here, weāre zooming in on a smaller slice of that group: the 20ā30% who actually borrow through Aave. Most users are just lending their crypto, not borrowing it.
š Donāt worryāweāll 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 didnāt wait around.
They moved fast to claim their spot and made sure rivals didnāt get a foothold.
And so far? That aggressive approach seems to be working.
That kind of growth doesnāt come without a price however.
Aave is still handing out rewards to encourage specific actionsālike 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 itās 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 doesnāt seem like a sturdy enough cushion, consider thisāAave 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 mindādonāt worry, weāll dive into that at the end.
But before we move on, thereās one more chart worth highlighting. Aaveās 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 210Māa 5x increase in just one year.
But what does a stablecoin have to do with Aaveās 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.
š This lets them cut out the āmiddlemanā and keep all the interest payments for themselves ā boosting their profits big time.
Now that youāre up to speed on Aave and what theyāve been doing, letās dive into their latest announcements.
Uh, Ohā¦ š§ The rest of this report is exclusive to Milk Road PRO members!
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WHATāS LEFT INSIDE? š
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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