Aave Launches GHO on Ethereum Testnet, Price Action Turns Bearish
11. Februar 2023
• Aave launched its stablecoin GHO on Ethereum’s testnet.
• The deployment of GHO on the testnet means competition in the DeFi sphere has intensified.
• The 24-hour on-chain volume of Aave spiked after the announcement.
Aave Launches Stablecoin GHO on Ethereum Testnet
Aave, a decentralized lending project, has launched its stablecoin GHO on Ethereum’s [ETH] testnet according to an official tweet on 9 February. This development marks an important milestone for the project as it prepares to make its mark in the DeFi space.
Heightened Competition in DeFi Space
With respect to other players already present in the market, MakerDAO [MKR] has been leading with its popular stablecoin DAI. Additionally, Tron’s [TRX] foray into the sector resulted in USDD being released though it lost its dollar peg multiple times. In terms of Total Value Locked (TVL), MakerDAO was ahead at $7.05 billion while Aave was fourth at $4.45 billion. However, there wasn’t much difference between them when it came to growth over previous months or even last 24 hours with both around 4% decline.
Development Updates Regarding GHO
Aave shared some development updates regarding their newly deployed stablecoin GHO as well. According to these updates, a proposal highlighting GHO’s borrow and discount rate will be shared with their community and key contributors would develop a framework to onboard new facilitators as well.
AAVE Price Action
Regarding AAVE price action, the protocol saw a 4% decline within last 24 hours and settled down at $79.229 by press time but had an increased volume during same period which indicated higher transactions through Aave network after announcement of official launch of stable coin GHO on Ethereum testnet . According to Santiment data ,the 24 hour on chain volume spiked up to 200 million which showed that more transactions were passing through Aave network since announcement was made..
The launch of AAVE’s official stablecoin GHO is expected bring disruption into DeFi space as it maintains a stable value while being minted and burned by facilitators . It will also be functioning in Aave V3 ethereum pool providing help with collateral asset and interest rates . With this launch ,competition between different protocols has increased which is beneficial for users who are looking for more options for liquidity provisioning .