Bitcoin

AAVE price rises to $ 123 all-time high with TVL rising and fundamentals improving

As the bull market for cryptocurrencies continues to gain momentum, The price of Aave’s domestic token (AAVE) is moving towards new all-time highs.

The growth of the decentralized credit platform seems to be supported by Improving fundamentals, steadily growing the total value locked on the platform, and creating a DeFi-based crypto collectible and community called Aavegotchi.

It is undeniable that Aave was one of DeFi’s biggest hits of 2020 as its price jumped from $ 2 in January 2020 to today’s all-time high of $ 123.92.

4-hour chart of the AAVE / USD pair. Source: TradingView.com
AAVE price rises to $ 123 all-time high with TVL rising and fundamentals improving
AAVE price rises to $ 123 all-time high with TVL rising and fundamentals improving

The last pause saw The price rose 52.6% in the last 3 days and several analysts attribute part of the increase to the “coinbase effect”. after the major US crypto exchange announced that it would place AAVE on its platform on December 15th.

AAVE tracks the progress of Bitcoin

According to DeFi Pulse Aave is now DeFi’s second platform according to the Total Locked Value metric. The platform is currently entrusted with a total of $ 2.41 billion.

Total value locked in Aave (in USD). Source: defipulse.com

The platform also appears to have a correlation between the total value locked on the platform and the price movement of BTC. As shown in the pricing table below, When the price of BTC goes up, so does the value that is locked on the Aave platform.

3 month chart of the price of the BTC / USD pair. Source: Cointelegraph.com

The decision to expand beyond Ethereum to the broader crypto-economy and the ability to trade BTC over the Ethereum protocol via Layer 2 solutions appear to have played a key role in the growing success of Aave and its offerings. decentralized financing in the expansion.

The use of DeFi, Layer 2 technology and NFTs is catalyzing growth

Cryptocurrencies are a constantly evolving sector And the more active and innovative tokens tend to retain their value and growth potential compared to meme tokens and projects without roadmaps.

As the DeFi sector and non-fungible tokens (NFTs) grew in popularity over the course of 2020, the team started Aavegotchi (GHST), A DeFi enabled collectors project that combines DeFi features with the growing trend of NFT and crypto collectibles.

GHST was launched as a governance token sale by the DAO (Decentralized Autonomous Organization), a DAICO. in which all the funds raised were administered by the community. The platform enables users to collect, combine, and compete with their Aavegotchi in an ever-expanding gaming experience.

Users can also use their GHST tokens on the Aavegotchi platform to generate frens. This allows you to buy raffle tickets for special items or conjure up new Aavegotchi.

By keeping up with emerging trends in the cryptocurrency sector, the team appears to have strengthened its ecosystem, and this may have enabled AAVE to survive the mid-October sell-off of the DeFi ecosystem.

During the correction in the DeFi sector, many tokens lost up to 80% of their value and AAVE and GHST tokens were not spared from the slaughter. This resulted in the team delaying the launch of its NFT platform and the recent 70% rally for Ether (ETH) forcing the Aavegotchi team to delay the launch of its Ethereum mainnet due to increased gas fees. .

This week the team announced that instead of starting in Etheruem, Aavegotchi will go to Red Matic for the moment.

The team confirmed this decision with the community and stated that OpenSea, one of the largest NFT marketplaces, will soon also be launched on Matic. These figures coincided with an increase in the MATIC price, and in the past 24 hours the price of the token has increased 28%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move is associated with risks. You must do your own research when making a decision.

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