In the last 24 hours Aaves LEND token hit a new all-time high after climbing 30% from $ 0.59 to $ 0.77. The strong upward movement occurs when Bitcoin (BTC) and most altcoins are in the red and lose momentum as the US dollar rallied.
The latest run appears to be fueled by news that the DeFi Loan and Loan Protocol (Decentralized Funding) received an electronic money institution (EMI) license from the UK Financial Conduct Authority (FCA). This enables Aave’s parent company, Aave Limited, to “issue electronic money (e-money) and provide payment services”.
Indeed, Aave users can borrow or borrow digital assets without the involvement of third parties. LEND is a governance token that owners can use to vote on future and platform-specific changes related to their ecosystem.
While LEND currently only offers voting rights, More features can be added if users vote for them.
Aave makes leaps and bounds
According to him Aave CEO Stani Kulechov, the FCA approval is in line with the company’s future plans for the protocol and will help attract new partners to the ecosystem.
However, in the past few months, other relevant news has also been spread via Aave. This explains why LEND has grown nearly 5,000% since early 2020.
The company was recently established Your Aavenomics suggestion, which, if approved by token holders, will bring a lot of changes like adding rewards for LEND holders.
In addition, data from Defi Pulse show that The Aave protocol recently hit a Total Locked Value (TLV) of $ 1.44 billion, outperforming Maker too. That has a locked asset of $ 1.42 billion.
In private comments, Aaves COO, Jordan Lazaro Gustave, said that to Cointelegraph New features are coming to Aave soon. Gustave said:
“Aave will also enable the transfer of credit, whereby party A can delegate its credit line to party B, which can use it to borrow. All of this will be possible thanks to a legal agreement through OpenLaw. For example, a credit delegator could be a party that wants to accumulate more credit and the borrower could be a company, NGO, government, institution, etc. “
Is DeFi facing a correction?
While LEND has seen some excellent weeks in the price charts, Correct most cryptocurrencies as the price of Bitcoin drops below the key support of $ 11,400.
Some analysts believe the current “Altcoin season” is coming to an end. The digital asset data company Santiment, recently suggested that Bitcoin will soon regain its dominance over the entire cryptocurrency market.
According to analysts at Santiment Profits from astronomical runs with lots of tokens related to the DeFi ecosystem are quickly flowing back into stablecoins and bitcoin.