Recently, we have focused on several noteworthy Crypto Assets projects, among which AAVE is particularly eye-catching.

In the past 90 days, the price of AAVE has increased by approximately 120%, significantly outpacing similar lending protocols such as COMP and MORPHO. This impressive performance reflects AAVE's further consolidation of its dominant position in the market.

Let's analyze AAVE's market position through some key data:

The total locked value (TVL) reached a historic high of 45.6 billion USD, growing by 32.6% since the beginning of the year, surpassing the sum of the bottom 30 lending protocols. The total active loans amount to 18.2 billion USD, accounting for 62.8% of the entire lending market. The annual protocol revenue is 603 million USD, capturing 63% of the industry share, indicating a significant head effect.

From a valuation perspective, the fully diluted market cap of AAVE is approximately 7.6 times its annual revenue, which is relatively reasonable. On one hand, AAVE has a solid revenue base; on the other hand, product innovations such as the V4 architecture and umbrella modules are expected to further enhance efficiency and security.

Several important updates that AAVE is promoting are worth following:

1. The V4 architecture adopts a 'Hub-and-Spoke' model to unify liquidity across different markets, improve capital efficiency, and lay the foundation for multi-chain deployment.

2. The V3 version has been deployed to the Aptos chain, marking AAVE's first entry into the non-EVM ecosystem, reflecting its strategy of actively expanding into the multi-chain market.

3. The stablecoin GHO has landed on the Avalanche network.

4. The introduction of the 'Umbrella Module' allows aToken staking to earn additional yields while participating in the construction of the protocol's security buffer pool, optimizing the token distribution mechanism, effectively controlling inflation, and being beneficial to token holders.

In summary, AAVE, as a continuously innovative and mature protocol with stable revenue, is expected to enhance its value in every round of market cycles. With the development of the DeFi sector, AAVE's market position and innovative capabilities will continue to be closely followed by investors.