web3: Aave's XAUT Deposits Rise to $76.7 Million

CoinWorld reports:

Deposits of tokenized gold on Aave have seen a significant increase recently. According to the data in the article, the deposits of Tether Gold (XAUT) on the protocol have risen from approximately $40 million in early June to $76.7 million, an increase of about 91.7%. Based on current data, Aave has become one of the main DeFi use cases for tokenized physical gold.

XAUT Used for Borrowing Stablecoins

This surge is not just due to passive storage of gold tokens in the protocol. XAUT can now be used as collateral in the lending market, allowing users to borrow stablecoins like USDT and USDC while maintaining exposure to gold.

This means that tokenized gold is beginning to possess stronger liquidity functions. Some users can obtain liquidity while holding gold assets and can reinvest the borrowed stablecoins into other on-chain strategies. The article mentions that global uncertainty and high gold prices are among the background factors driving the increase in demand.

However, an increase in deposits does not mean that risks have disappeared. Leveraging against gold tokens as collateral will still be affected by fluctuations in the underlying asset's price.

Aave's Lending Activity Also on the Rise

Alongside the growth in XAUT deposits, overall lending activity on Aave is also expanding. The article notes that the active loan volume in the Aave V4 related markets is close to $150 million, with the amount borrowed being $130.9 million and the supply volume at $389.1 million.

• Stablecoin borrowing volume is approximately $7.4 billion
• Stablecoin supply volume is approximately $8.98 billion
• Stablecoin utilization rate is approximately 82.5%

A high utilization rate typically indicates that funds are not sitting idle but are continuously borrowed and used within the protocol. This also reflects that the current lending demand on Aave remains strong.

AAVE Price Recovers Above $85

In addition to on-chain data, the price of the AAVE token has also recovered from its low in June. The article states that AAVE has rebounded from a low of nearly $60 and is currently maintaining above $85.

The report also mentions that around $108 is currently a more closely watched resistance level, corresponding to the position of the 200-day exponential moving average. The market's short-term focus remains on whether Aave's on-chain activity can continue to support price performance.