On August 14, the variable interest rate for borrowing ETH from Aave v2 climbed up to reach 2.90%, the highest rate since February 2021. Meanwhile, the utilization rate of the ETH money market reached an all time high of 52%. This is the percentage of the pool that has been borrowed by other users.
This comes as a sharp increase from the beginning of this year when the borrow rate was 0.27% and the utilization rate was 2%. This increase is likely the result of users positioning themselves to profit off a potential hard fork of the Ethereum chain.
