Some data worth sharing from Aave v3.
Lately, I've been pretty impressed by how well
@aave is executing. But despite the market recovery, DeFi still has a long way to go.
There's an interesting trend in Aave V3: capital utilization. Back in July 2022, utilization was around 60–70%. After a wave of liquidations, it collapsed to roughly 30%.
Since then, it's been recovering gradually. Today we're at ~41%, with recent peaks approaching 50%.
I think this reflects a more mature DeFi market, with users becoming more sophisticated in how they manage leverage and borrowing.
And with improvements in capital efficiency and growing institutional adoption, especially around Bitcoin, I wouldn't be surprised to see utilization continue climbing.