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- Aave’s revenue on Ethereum has climbed to $192M with 55% lending market share.
- Active loans surpassed $28B, reflecting strong DeFi demand.
- AAVE’s price remains flat, creating a gap between fundamentals and sentiment.
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Aave [AAVE] has seen a sharp uptick in borrowing activity on Ethereum, pushing its protocol revenue to new heights—even as its token price lags behind.
Borrowing Boom Fuels Revenue Growth
Fresh data from Token Terminal shows Aave’s protocol revenue on Ethereum climbing to $192 million, capturing a 55% share of the lending market. The platform’s weekly run rate of $3.08 million underscores a consistent rise in user engagement.
Driving this surge is Aave’s expanding loan book. Active loans recently crossed $28 billion, marking months of steady growth. Historically, rising borrowing demand has directly translated into higher revenues, as users pay fees that strengthen the platform’s financial base. This trend points to renewed trust in decentralized finance (DeFi), with more investors moving away from centralized lenders in favor of open protocols like Aave.
Price Action Trails Behind
Despite Aave’s improving fundamentals, AAVE’s price has failed to reflect the same momentum. The token has slipped about 2% in the past 24 hours, consolidating around the $290 demand zone and testing an ascending trendline support.
This disconnect highlights a familiar dynamic in crypto: fundamentals can improve long before price sentiment reacts. Either enthusiasm around AAVE could soon align with its revenue growth—or borrowing demand may cool, easing revenue momentum.
Fundamentals Hint at Possible Breakout
For now, the fundamentals look stronger than the market’s mood. If borrowing demand stays above $28 billion, Aave could be setting up for a breakout rally in the weeks ahead, as price often lags when core usage metrics strengthen.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: $15M Whale Accumulation Sparks Aave (AAVE) Price Breakout Speculation
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