Aave (AAVE) drew in more than $20B in net deposits again, following the overall market recovery. The protocol continues to expand as the supply of GHO is now above 150M tokens.
Aave (AAVE) is one of the fastest-growing protocols, rebuilding its value in the past three months. After a brief period of withdrawals, net deposits on Aave are back above $20B. The protocol carries more than $7.5B on active loans, which are safely protected by excess collateral.
The Aave protocol is also growing its value locked as crypto markets regained their positions. Aave total value locked (TVL) increased to $12.5B on its Ethereum version. On all chains and versions, DeFi Llama reports total value locked of $20.53B. After the latest expansion, Aave surpassed EigenLayer, remaining the second most liquid DeFi hub after LidoDAO.
The value is fragmented across a total of 13 chains. User count and value locked may differ depending on the size of deposits and transaction expenses. The recent boost to Aave metrics follows the rapid appreciation of the AAVE token, one of the few to outperform Bitcoin (BTC) in the past months.
AAVE expects breakout to $200
Aave established itself as the most reliable lending protocol on Ethereum, after outflows from Curve. The protocol also surpassed Sky, formerly Maker, which is still busy reorganizing its collaterals and asset structure.
AAVE climbed from just outside the top 100 of coins and tokens, up to position 37 with a total capitalization of $2.47B. AAVE expanded to $177 during its most recent rally, later retreating to $165.32. The asset is seen as potentially breaking out higher, as it has not yet left the years of sideways trading.
From 2025 onward, Aave will also start unlocking its Ecosystem Reserve tokens. Only around 18% of AAVE tokens remain unlocked, as the project has gone through its steepest inflationary stage. The AAVE token launched four years ago and its fully diluted value is only slightly higher than the circulating market capitalization.
Aave is watched as the potential leader of the DeFi space. Even other protocols are using Aave as the main lending and settlement layer. The asset is expected to break out and touch $250 in the short term, with a chance of repeating its all-time high above $660. The latest ETH hike improved the overall state of DeFi, by increasing the value of collaterals. The whole DeFi sector now holds more than $89B in collaterals and liquidity pools.
Aave prepares to divest WBTC
Aave protocol holds $2.3B in value locked in the form of Wrapped BTC (WBTC). This token is considered risky, due to the shift of control to BitGlobal. The Aave WBTC reserves surpass even those of Sky and will have a much bigger effect on the market when divested.
There is still no proposal to remove WBTC as a collateral asset. The current discussion is just a consultation with the community. The initial goal is to reduce WBTC collateral to zero on the most widely used chains for Aave – Ethereum, Arbitrum, Avalanche, Harmony, Optimism, and Polygon.
WBTC has a total market cap of $9.66B, and the move of Aave may be the most significant winding down of the asset, affecting up to 20% of the supply.
GHO supply grows even faster
GHO, the Aave protocol stablecoin, may reach its $175M market cap threshold faster than expected. The token already has a supply of 150M, adding 62M tokens in the past three months.
After reaching the 175M supply range, Aave will start burning the native AAVE token through buybacks. The role of GHO will make AAVE even more deflationary, sparking hopes for a return above $200 in the short term.
GHO exists in a complex structure of burning and minting, in order to move coins to L2 chains. GHO starts out as an Ethereum token, and uses ChainLink data to establish the right supply for each L2 chain.
The leading chain to carry Aave activity is Base, follower by Arbitrum and Polygon. Ethereum’s native L1 is rarely used for lending activities. On Base, the lending platform accrued 367.9K users.
GHO is 150% crypto-collateralized, using USDC, DAI, and ETH in its reserves. The most recent recovery of ETH close to $2,700 is helping the stability of USDC and raising the demand for AAVE.
GHO is still held closely by top whales, with more than 97% of the supply in the top 10 wallets. The token’s structure makes GHO more suitable for lending and liquidity pools. GHO has a smaller turnover, and is yet to reach a wider user base. The stablecoin is only held in 2,084 wallets on Ethereum L1.
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Cryptopolitan reporting by Hristina Vasileva.
Aave pushed its net deposits to above $20B, spread across 13 blockchains. The lending protocol grows its GHO supply, while testing the community for removing WBTC as collateral.
Amazon’s journey from a modest online bookstore to the world’s largest online retailer is a narrative of innovation, disruption, and relentless ambition. Today, Amazon dominates the e-commerce landscape, setting the standard for online shopping with its vast product selection, lightning-fast delivery, and customer-centric approach. This article explores the evolution of Amazon’s leadership in online shopping, examining the key strategies, innovations, and challenges that have shaped its rise to the top.
The Early Days: From Bookstore to Everything Store
Amazon was founded by Jeff Bezos in 1994 as an online bookstore, capitalizing on the internet’s potential to reach a global audience. The decision to start with books was strategic; books were easy to ship, did not require much storage space, and had a universal appeal. From the beginning, Bezos envisioned Amazon as more than just a bookstore. His long-term goal was to create the “everything store,” a one-stop-shop where customers could find and purchase anything they needed online.
The initial success of Amazon was driven by its innovative approach to e-commerce. While traditional bookstores were limited by physical space, Amazon offered an extensive catalog of books that was virtually limitless. The company’s early focus on customer satisfaction, with features like customer reviews, personalized recommendations, and a user-friendly interface, set it apart from competitors.
By 1997, Amazon had gone public, and its rapid growth continued. The company began to expand its product offerings beyond books, gradually adding categories like music, electronics, and toys. This diversification was essential to Amazon’s strategy of becoming the go-to online retailer for all consumer needs. The company’s ability to offer a wide range of products, combined with its commitment to customer service, established it as a leader in online shopping.
Innovation and Expansion: The Prime Revolution
One of the most significant milestones in Amazon’s evolution was the launch of Amazon Prime in 2005. For an annual fee, Prime members received free two-day shipping on eligible purchases, a proposition that was revolutionary at the time. The introduction of Prime was a game-changer, transforming customer expectations and further solidifying Amazon’s leadership in online shopping.
Prime was more than just a shipping service; it was a strategic move to create customer loyalty. The subscription model incentivized customers to make Amazon their default shopping destination, as the more they used Prime, the more value they received. Over time, Amazon expanded the benefits of Prime to include streaming video and music, exclusive deals, and other perks, making it an indispensable service for millions of customers.
The success of Prime can be measured by its membership numbers, which have grown exponentially over the years. As of 2024, Amazon Prime has over 200 million members worldwide, a testament to the value it offers. The Prime membership model has been so successful that it has influenced the broader retail industry, with many competitors launching their own subscription services in response.
The Technology Edge: Fulfillment and Logistics
Amazon’s dominance in online shopping is not just a result of its vast product selection and customer-centric approach; it is also rooted in its technological prowess. The company has invested heavily in building a state-of-the-art fulfillment and logistics network, which has been a critical factor in its ability to offer fast, reliable delivery to customers.
Amazon’s fulfillment centers, which are strategically located around the world, are marvels of automation and efficiency. These facilities use advanced robotics, artificial intelligence, and data analytics to manage inventory, process orders, and ship products with unparalleled speed. The company’s ability to deliver products quickly and accurately is a key reason why customers choose Amazon over other online retailers.
In addition to its fulfillment centers, Amazon has developed a vast logistics network that includes its own fleet of planes, trucks, and delivery vehicles. The company’s investment in logistics has allowed it to reduce its reliance on third-party carriers like UPS and FedEx, giving it greater control over the delivery process. This vertical integration has enabled Amazon to offer services like same-day and next-day delivery, further enhancing its competitive advantage.
Moreover, Amazon’s logistics innovations extend beyond its own operations. The company’s delivery service partner (DSP) program has created opportunities for small businesses to operate delivery routes for Amazon, while its crowd-sourced delivery platform, Amazon Flex, allows individuals to deliver packages using their own vehicles. These initiatives have expanded Amazon’s delivery capacity and ensured that it can meet the growing demand for fast shipping.
Expanding the Ecosystem: Marketplace and AWS
Another key component of Amazon’s success in online shopping is its ability to create a comprehensive ecosystem that extends beyond retail. The Amazon Marketplace, launched in 2000, has been instrumental in expanding the company’s product selection and driving revenue growth. The Marketplace allows third-party sellers to list their products on Amazon’s platform, giving customers access to a wider range of goods and enabling Amazon to earn a commission on each sale.
The success of the Marketplace has been staggering. Today, over half of the products sold on Amazon are from third-party sellers, many of whom are small and medium-sized businesses. The Marketplace has also been a critical factor in Amazon’s global expansion, as it allows sellers from around the world to reach customers in different markets without the need for a physical presence.
In addition to the Marketplace, Amazon Web Services (AWS) has played a crucial role in the company’s growth and profitability. Launched in 2006, AWS offers cloud computing services to businesses, allowing them to store data, run applications, and scale their operations with ease. AWS has become the backbone of the internet, powering everything from startups to large enterprises. The revenue generated by AWS has given Amazon the financial flexibility to invest heavily in its retail operations, including its logistics network, Prime, and original content for Prime Video.
Challenges and Criticisms
While Amazon’s leadership in online shopping is undeniable, it has not been without challenges and criticisms. The company’s dominance has raised concerns about its impact on competition, with critics arguing that Amazon’s scale and market power give it an unfair advantage over smaller retailers. There have also been concerns about the treatment of workers in Amazon’s fulfillment centers, with reports of grueling conditions and low wages sparking public outcry and calls for better labor practices.
Amazon has also faced scrutiny over its impact on the environment. The company’s rapid delivery services, which require a vast logistics network, contribute to carbon emissions and environmental degradation. In response, Amazon has pledged to achieve net-zero carbon emissions by 2040 and has invested in renewable energy and electric vehicles to reduce its environmental footprint.
Despite these challenges, Amazon continues to grow and innovate, constantly pushing the boundaries of what is possible in online shopping. The company’s ability to adapt to changing consumer preferences, invest in technology, and create a seamless shopping experience has ensured its position as the leader in e-commerce.
The Future of Amazon in Online Shopping
As Amazon looks to the future, it faces both opportunities and challenges. The rise of new technologies like artificial intelligence, machine learning, and automation will continue to shape the e-commerce landscape, and Amazon is well-positioned to leverage these innovations to enhance its operations and customer experience.
The company is also likely to continue expanding its ecosystem, integrating its retail operations with other services like AWS, Prime Video, and Alexa. This integration will further entrench Amazon in the daily lives of consumers, making it even more difficult for competitors to challenge its dominance.
In conclusion, Amazon’s leadership in online shopping is the result of a relentless focus on customer satisfaction, innovation, and scale. From its early days as an online bookstore to its current status as a global e-commerce giant, Amazon has consistently pushed the boundaries of what is possible in retail. As the company continues to evolve, it will undoubtedly remain a dominant force in the world of online shopping, shaping the future of commerce for years to come.
