DeFi
DeFi platforms Lido and Aave surpass Bitcoin and Ethereum in fee generation
Decentralized finance projects Pool And Aave generated more fees in the last 24 hours than major blockchain networks like Bitcoin, Ethereum, and Solana.
According to DeFillama data, Lido has accumulated $2.34 million, while Aave has amassed $1.85 million during this period. On the other hand, Ethereum, Bitcoin, And Solana obtained $1.84 million, $1.34 million and $1.17 million in fees, respectively.
Table showing the top 5 crypto fee generating platforms (Source: DeFillama)
Market watchers explained that the fee hike reflects crypto users’ willingness to engage with these platforms on traditional blockchain networks.
Why do people use Aave?
The Bank for International Settlements (BIS) explained that crypto investors use DeFi lending pools like Aave to seek returns.
BIS declared:
“This effect is particularly strong for retail users and has been reinforced by the ‘long-term low’ interest rate environment in advanced economies.”
Given its substantial adoption, Aave Labs, the entity behind the DeFi lending platform, recently revealed a 2030 strategic roadmap that introduces several key initiatives, including the launch of Aave V4, a new visual identity and expanded DeFi capabilities.
Meanwhile, Marc Zeller, founder of the Aave Chan Initiative, recently suggested as the protocol prepares to implement a fee change to boost engagement and investment in its ecosystem.
This feature essentially allows platforms to enable or disable certain usage fees. In the case of Aave, this could lead to the redistribution of fees generated by transactions towards platform participants, particularly Aave holders and stakeholders.
DeFiLlama data shows that Aave is the largest lending protocol, with over $10 billion in assets locked.
The domination of the Lido
Lido is a decentralized autonomous organization (DAO) that provides a liquid staking solution for multiple proof-of-stake blockchain networks, such as Ethereum.
The protocol allows users to pool and stake their assets on these blockchain networks to earn up to 3% APR rewards. Lido represents approximately 28.5% of the Ethereum staked, making it the largest DeFi protocol. According to DeFillama dataits total value locked is around $28 billion.
Meanwhile, Lido’s market dominance faces strong competition from the new reconversion concept led by EigenLayer.
Mentioned in this article
Published in: Aave, Challenge, Tokens