Analysis of activity on lending platforms can sometimes be used as a barometer to measure sentiment towards the cryptocurrency market, as a greater number of secured loans may indicate that traders are eager to trade in a rising market. .
On April, Total locked value on Maker (MKR), Aave (AAVE) and Compound (COMP) rose to new highs along with rising token values and trading volumes.
All three projects are network-based Ethereum (ETH) and have benefited from the rise in the price of ETH, as well as a recent decrease in the average gas commission that has caused a commitment pickup of users with decentralized finance (DeFi).
MKR / USDT
Maker has seen the highest price appreciation in April thanks to multiple factors, including an update to its settlement engine and the possible expansion of its approved collateral list.
The Maker protocol is responsible for the creation of the stablecoin DAI, who has seen his circulating supply reach a new high of 3,569 million tokens.
Data of DappRadar show that the total locked value (TVL) on the Maker platform has risen throughout the month of April and now stands at USD 11.09 billion, making it the number one Ethereum-based DeFi platform in terms of TVL.
With institutions now getting involved in the cryptocurrency sector and showing great interest in the growing Ethereum network, the ecosystem MakerDAO and its DAI stablecoin could see further gains in users and TVL as one of the most established and durable DeFi protocols in the space.
AAVE / USDT
The growth of the AAVE ecosystem really started to take off in mid-April after the project launched on the Polygon network. in an effort to help scale the protocol while it remained on the Ethereum network.
The launch was well received, as what shows the fact that the Polygon-based AAVE protocol exceeded $ 1 billion in liquidity within 10 days of its launch.
Polygon’s rising price and rapid growth of its DEX, QuickSwap, coincided with a sharp increase in the TVL of the AAVE protocol, which now amounts to USD 10.56 billion according to data from DappRadar.
The rapid rise in TVL that began on April 25 coincided with a 55% increase in the price of AAVE, from a low of $ 315 to a high of $ 534 on May 3. AAVE’s migration to the Polygon network and the increased scalability it offers continues to attract new users and push the price of the token to new highs.
COMP / USDT
Compound’s price lurched in both directions in April, but that didn’t stop the protocol from hitting a new all-time high.
Data from Cointelegraph Markets and TradingView show that, After rebounding from a low near $ 430 in April, the price of COMP rose 104% to set a new all-time high at $ 879 on May 2.
The main driving force behind the enthusiasm in the community has been a series of votes on governance, as well as the approval of the second batch of development grant recipients.
According to data from DappRadar, Compound protocol TVL surpassed the USD 11 billion level in mid-April, before a general market downturn caused prices to decline, causing a rapid decline in the value of assets locked on the platform.
Now that the markets seem to be waking up, With Ethereum just hitting a new all-time high and Bitcoin (BTC) trying to break above the $ 58,000 level, the TVL and COMP price could trend higher again.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Each investment and trade movement involves a risk, you must carry out your own research when making a decision.