The price of Aave’s native token (AAVE) is moving towards fresh all-time highs as the crypto bull market continues to gain momentum.
The development of the decentralized lending platform appears to be supported by improving fundamentals, steady growth of the total value locked on the network, and the creation of a token and community focused on DeFi crypto-collectibles called Aavegotchi. Unquestionably, when its price rose from $2 in January 2020 to today’s all-time high at $123.92, Aave was one of the DeFi success stories of 2020.
Since the top U.S. crypto exchange revealed plans to list AAVE on December 15, the most recent breakout saw the price increase by 52.6 percent in the past 3 days and a number of analysts attribute part of the raise to the “Coinbase ffect”
Aave is now the second-ranked DeFi platform according to the overall value-locked metric, according to DeFi Pulse, with a total of $2.41 billion currently entrusted to the platform. A correlation between the overall valuation locked on the platform and the BTC price trend also tends to be shown by the platform.
Choosing to extend into the broader crypto economy beyond Ethereum, and the ability to exchange BTC via layer-2 solutions on top of the Ethereum protocol, seems to have been a crucial part of Aave’s increasing growth and its evolving decentralized finance offerings.
