- Ethena PT attracts Defi capital with higher yields, as a result, challenges Aave’s credit model.
- Aave prices show signs of weakness while their bullish momentum fades.
Ethena [ENA] Principal tokens (PT) part of the revenue stablecoin system launched by Ethena Labs-Steeg within just one month after $ 1 billion in collateral.
This increase comes after the assets have been approved as accepted collateral On an aave.
The list opened a new tool for the Synthetic Stablecoin exhibition system from Ethena, so that users can use their PT companies within the largest credit market in Defi.
For non-inexpensive, PTs are supported by Delta-neutral tactics that generate a high real yield, usually 15-25% on Susde. This has made them very attractive in a yield of yielded world, while the regular Defi-credit rates remain low.
The interest rates of Aave on loans are still falling
Conversely, Aave [AAVE] Witness was a steady decrease in his loan speeds. Most Stablecoin Leen interest rate is between 2-4%and it is no longer so tempting for lenders looking for a high return.
The decline could possibly reflect a greater trend, a falling demand for leverage on chains and surplus capital.
The growth of Ethena can even speed up the trend. Instead of parking assets in Aave’s loan pools, Capital is now flows to Susde, drawn by superior yield performance.
Source: X
Is Ethena Taking Aave’s capital pool?
The timing suggests a potential re -perception of capital.
While Ethena PT supplies above $ 1 billion in a month, the indigenous protocol meters from Aave all point to stagnation.
Lower loan demand suggests fewer protocol income and less value structure for the Aave -Token.
This divergence is threatening because the high yields of Ethena suck the Defi -Liquidity of legacy protocols such as an Aave.
If the trend continues, AAV can find it difficult to maintain its market share, especially without major innovation or increasing use of loan.
A price of an Aave consolidates under pressure
On the daily graph, Aave consolidates under the resistance of $ 270. The earlier bullish trend has been flattened, with a price action that is now stuck in a clear food zone.
Although this temporary indecision can reflect, it can also indicate the weakening of the basic principles associated with Aave’s shrinking loan activity.
Source: TradingView
Unless loan statistics recover, investor sentiment will probably remain careful around an Aave.
Since the revenue competition in Defi warms up, protocol maturity will not be sufficient – an Aave may need a new catalyst to remain competitive.