Activity analysis on lending platforms can sometimes be used as a gauge to gauge cryptocurrency market sentiment, as many additional loans may indicate traders’ desire to trade in a growing market.
In April, the total value of the Maker (MKR), Aave (AAVE) and Compound (COMP) tokens rose to new heights along with higher token prices and trading volume.
MKR / USDT versus AAVE / USDT versus 4 hour chart COMP / USDT. Source: TradingView
All three projects are based on the Ethereum (ETH) network and have benefited from the increase in the price of ETH, as well as the recent decline in the average price of gasoline, which has led to increased user participation in decentralized financing (DeFi).
MKR / USDT
The manufacturer saw the largest price increase in April due to a number of factors, including an updated filter mechanism and a possible extension of the approved list of warranties.
Maker Protocol is responsible for creating the DAI stablecoin, which has reached a new high of 3.569 billion tokens.
DappRadar data shows that the total closed value of Maker Platforms (TVL) rose to $ 11.09 billion in April, making it the first Ethereum-based DeFi platform for TVL.
The total cost is locked to the manufacturer. Source: DappRadar
With institutions involved in the cryptocurrency sector showing a keen interest in the growing Ethereum network, MakerDAO and the stable DAI ecosystem could see further growth in user numbers and TVL as one of the most stable and enduring DeFi protocols in the space.
AAVE / USDT
The growth of the AAVE ecosystem actually started in mid-April with the launch of the project on the Polygon Network to help scale the protocol while they were still on the Ethereum network.
The launch was well received, as evidenced by the polygon-based AAVE protocol, which surpassed $ 1 billion in cash within ten days of launch.
The increase in polygon prices and the rapid growth of QuickSwap DEX coincided with a sharp increase in TVL in the AAVE protocol, which is now $ 10.56 billion according to DappRadar.
The total cost is insured with Aave. Source: DappRadar
TVL’s rapid increase, which began on April 25, coincided with a 55% increase in AAVE’s price from the lowest of $ 315 to the highest of $ 534 on May 3. Attract new users and push the price of the token to new heights.
COMP / USDT
The call price went sharply in both directions in April, but that didn’t stop the protocol from reaching a new full-time high.
COMP / USDT chart for 4 hours. Source: TradingView
Data from Cointelegraph Markets and TradingView shows that after jumping from a low of around $ 430 in April, the COMP price rose 104%, setting a new record on May 2 to $ 879.
The most important driving force behind the local community has been the chain of management voices, as well as approval of the second batch of development grants recipients.
According to DappRadar, TVL over Compound had already crossed the $ 11 billion mark in mid-April before a market downturn drove prices down, leading to a rapid drop in the value of assets locked onto the platform.
The total cost is insured for the connection. Source: Davey Lama
Now that the markets appear to be waking up with Ethereum, having just reached a new full-time high, and Bitcoin (BTC) struggling to break above the $ 58,000 level, the price of TVL and the price of COMP could rise again.