Bitcoin
DeFi platforms Lido and Aave outperform Bitcoin and Ethereum in generating fees
Decentralized finance projects Read It is Aave generated more fees in the last 24 hours than major blockchain networks like Bitcoin, Ethereum and Solana.
According to DeFillama data, Lido accumulated $2.34 million, while Aave accumulated $1.85 million during that period. In contrast, Ethereum, Bitcoin, It is Solana secured $1.84 million, $1.34 million, and $1.17 million, respectively, in fees.
Table showing the top 5 crypto fee generating platforms (Source: DeFillama)
Market observers explained that the increase in fees reflects the willingness of cryptocurrency users to engage with these platforms through 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 yield.
BIS stated:
“This effect is particularly strong for retail users and has been reinforced by the ‘long low’ interest rate environment in advanced economies.”
Given its substantial adoption, Aave Labs, the entity behind the DeFi lending platform, recently revealed a strategic roadmap to 2030 that features several key initiatives, including the launch of Aave V4, a new visual identity, and expanded DeFi functionalities.
Meanwhile, Marc Zeller, founder of the Aave Chan Initiative, recently suggested that the protocol is preparing to implement a fee change to encourage engagement and investment in its ecosystem.
This feature essentially allows platforms to activate or deactivate certain usage rates. In the case of Aave, this could lead to the redistribution of transaction fees to platform participants, especially Aave holders and stakers.
DeFiLlama data shows that Aave is the largest lending protocol with over $10 billion in assets locked.
The domain of Lido
Lido is a decentralized autonomous organization (DAO) that offers a liquid staking solution for various proof-of-stake blockchain networks such as Ethereum.
The protocol allows users to pool and stake their assets on these blockchain networks to earn APR rewards of up to 3%. Lido accounts for around 28.5% of Ethereum staked, making it the largest DeFi protocol. According to DeFillama dataits total value locked is approximately US$28 billion.
Meanwhile, Lido’s market dominance is under stiff competition from the new re-establishment concept led by EigenLayer.
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Published in: Aave, DeFi, Files