Today we continue our on-chain analysis journey. Yesterday we talked about the meme project, and today we started the Defi project. The oldest in DEFI should be the lending sector, and the current largest head project in lending is AAVE. I have mentioned it many times in many 20x project sharings and 100x projects that can be held for a long time. So what is the current on-chain data of this project? Let’s take a look at the analysis in this issue.

AAVE's performance this year is pretty good, with an increase of about 150%. The current market value is 2 billion US dollars, and 93% of it has been unlocked, so there will not be a lot of selling pressure. In the wave of decline on August 5, it reached 92. It is now at a new high and has completely gone out of the independent market. Why is this the case? Let's take a look at its explosive data performance on the chain.

Loans&holders

First, let's look at its lending rate. The total loan is currently continuing to strengthen, especially since the end of 2023. In September 2023, the loan was 2 billion US dollars, and by July this year, the loan directly reached 8 billion US dollars, which has increased fourfold. In 2023, they launched the GHO stablecoin, and the current supply of GHO has reached 130 million.

The white line on the right side of the picture below indicates that the number of aave token holders has now reached 170,000. It is also in a state of continuous growth.

Market share

Looking at the figure below, the data is even more explosive. It can be seen that in 21 years, Compound was the leader in the market, but after several years of development, AAVE has now occupied 65% of the market share. The total loans in the current market are 11 billion, and AAVE alone has reached 7.1 billion. The second is Spark Protocol with only 1.4 billion, and Compound is 600 million, far behind.

Market value & turnover rate

The most important thing in the chart below is the white line, which represents the turnover rate of the token. Needless to say, the turnover rate plays an important role in the trading market. It is a very good measure of the market activity of the project. It is currently above 10%, and even reached a high of 30%, which is much higher than 23 years. Compared with the bull market in 21 years, it has almost reached its peak.

Online Pledge & Lending

The total amount of pledged funds on the network is 16 billion, almost three times the 6 billion in September 2023. The highest point in 2021 was only 26 billion. The loan data also increased year-on-year. See the chart for details.

Fees and revenue of the agreement (monthly)

This is also a very important indicator, representing the income capacity of the project. The blue line is Fees, representing the cost of the Internet, which has almost reached the peak of 21 years and is currently around 30 million. The white line is income. Currently, the monthly income is over 5 million, and some months have even reached 7 million. This data has fully exceeded the peak of 21 years. October of 21 was 6.7 million US dollars, which was the month with the highest income. Other months only had an income of 3-4 million US dollars.

Revenue and Incentives

This is more interesting. You have to know that in DeFi, if you want others to deposit money with you, you have to pay interest, and this is the incentive. The higher the interest you pay, the more willing others will be. It's the same as a bank. The figure below shows AAVE's incentives. You can see that in 21 years, the incentives were far greater than the income, but recently it has been almost the same. There will not be a large number of users increased through incentives, which is also a sign of the maturity of the project.

P/F&P/S

The P/F here should be calculated as the ratio of AAVE's price to its transaction fee, which is currently only 6. This value is slightly higher than during the bear market (about 2-3 in the bear market), but it is still lower than the big bull market in 2021 (about 10 in 2021). The lower this value is, the lower the transaction fee is. The lower the transaction fee is, the more user-friendly it is, because the cost of use for users is reduced.

P/S is its price-to-earnings ratio, which is amazing. It has been declining continuously. In July of 24, it should be the lowest at around 15. Now it has reached 30. The lowest price of the coin in July was just over 70, so it was still very satisfying to buy it at the bottom. Is 30 high now? Actually, it is not too high, because for a technology stock or the cryptocurrency circle, 30 is really not much. We have calculated that LDO's P/S is more than 100 before. There are too few profitable projects in the cryptocurrency circle, and most of them are gimmick projects. So this indicator is a very, very critical point.

Active Users

Currently, the project has about 5,000 active users (daily active users) and 800,000 monthly active users, which is also a historical high, higher than the high point in 21 years. This shows that either the platform is easy to use or the platform is friendly (preferential, low interest rate, good discount, security and other factors)

Lending data on each chain

The figure below shows the data of Aave on each chain. Ethereum is still the leader at present, with 5.7 billion, accounting for 85% of the market share. Others are Arbitrum and Avax.

Transaction fee data on each chain

Ethereum also takes the lion’s share of transaction fees on each chain, currently at 21 million, accounting for 80%. Arb is second, and Avax is third.

All the data tables above are from tokenterminal, which is a relatively comprehensive data table. The on-chain data cannot be cheated. By looking at the on-chain data of aave, it can be found that aave is indeed developing very well at present. In particular, there are several key indicators such as market share, turnover rate, revenue data, price-earnings ratio, etc., which are actually reflecting that AAVE is gradually becoming the dominant position in the lending sector of DEFI. It also teaches a lesson to many project parties. If you make good products, get the revenue data and user data right, the price of your currency will naturally go up, and it will also give investors confidence.#AAVE #DEFİ #内容挖矿