Aave Address Count On Optimism Rapidly Growing, Will Price Rise To New 13-Month High?

Dalmas Ngetich

7 months ago

3 mins read

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Aave, the decentralized lending platform, is among the largest DeFi protocols by total value locked (TVL). Over the years, despite the crypto price boom and bust cycle, the platform has operated flawlessly without any technical hitches.

Aave User Address Grew By 675% In One Week

Since the beginning of the year, Aave has dominated headlines, mostly around its price performance and rising TVL. However, looking at other metrics, the lending platform is performing solidly.

According to Santiment, Aave on Optimism is the fastest-growing protocol on their watch among platforms, commanding at least $500 million in TVL. The number of Aave addresses on Optimism grew by 675%, roughly twice that of KuCoin tokens (KCS).

Aave is rapidly growing on Optimism | Source: @santimentfeed via X

At this pace, Aave outperformed Maker–another lending and borrowing protocol on Ethereum, Chainlink on Optimism, and Raydium–a top decentralized exchange (DEX) on Solana. Of note, Chainlink on Optimism and Raydium grew over the last week by 100%.

The fact that Aave on Optimism grew faster than Raydium, the top DEX on Solana, is a milestone. By default, any meme coin launching on Pumpfun that achieves at least 69 SOL automatically lists on Raydium.

Although only a small percentage graduate and are listed on Raydium, tens of thousands of meme coins launch on the meme coin launchpad on Solana.

Santiment now thinks AAVE prices may likely benefit from this growth. Pointing to historical performance, the sentiment analytics platform said there is usually a strong correlation between rising utility and consistent growth with long-term gains.

According to Dune, there are over 49,800 unique daily users of Aave v3 on Ethereum. Over the last two days, there were 70 new users. While there is growth in the number of cumulative users, as expected, the number of new users remains steady.

Aave v3 user base | Source: Dune Analytics

Will Prices Rise To Fresh 2024 Highs?

AAVE is trading above $150, trending at around 2024 highs. Although the token is in an uptrend, prices have moved sideways over the past four weeks. Technically, a close above $180 could drive demand, lifting prices to new 2024 highs in the coming days.

Aave price trending upward on the daily chart | Source: AAVEUSDT on Binance, TradingView

Possible drivers include the recovery of DeFi and other project-related factors. As of October 17, 56% of all cbBTC–the Bitcoin stablecoin by Coinbase–was locked in Aave.

The protocol also plans to launch a new Merit Program for cbBTC. Those who borrow USDC by issuing cbBTC as collateral will receive more rewards if they move their debt from USDT to USDC. Moreover, those who switch from wBTC to cbBTC collateral will receive additional collateral.

Feature image from UnSplash, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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