Aave’s share price reaches a new record high
The token price of the Aave decentralised finance platform (DeFi) reached its highest level to date.
- The higher the total blocked value (TVL) in DeFi increases, the more value flows into its main platforms, including Aave.
- Aave allows users to borrow and earn interest through deposits, but without a centralised regulator.
- The Trust Project is an international consortium of media organisations based on transparency standards.
With the continued Financial Peak growth of decentralised finance (DeFi), some of its key applications, such as the Aave protocol, are seeing the price of their token rise considerably.
While the total blocked value (TVL) in DeFi is around 25 billion dollars, some of the main decentralised finance projects are recording record prices. Aave is one such project. It is an open source and custodial DeFi protocol, which allows its users to earn interest on deposits and borrowings of assets.
The soaring rise of Aave
Does this look like the setting of a traditional bank? It does. However, with Aave, the majority of fees and profits are paid to the platform’s users and its media. According to defipulse.com, an analysis and ranking platform, Aave is the second highest ranked application in terms of LCT (currently $3.63 billion).
The huge amount of value stored on the platform coincides with AAVE token prices, which have never been higher. The token has now exceeded $250. Meanwhile, the total market capitalisation of the network is approaching $3 billion. At its current market capitalization, Aave is the 15th largest blockchain network in the world.
The explosion of decentralized finance
This record level follows a 20% increase in the price in the last 24 hours. Such sudden rises seem to be commonplace in recent times in the decentralised finance industry. Investors are more enthusiastic than ever about the future of these new financial products. As a result, people are looking outside the more established tokens to try to generate interesting gains.
Many financial transactions are adapted to these decentralised platforms. These include loans, decentralised exchanges (DEX), decentralised derivatives and asset management. One of the most interesting aspects, however, lies in the platform used to develop most of these applications.
If one refers to the main channels in terms of TVL on the Defipulse site, it can be seen that only one of the 63 main channels with its TVL does not work on Ethereum. In addition to Lightning Network, a Layer 2 scaling solution for the Bitcoin blockchain, the remaining 62 main channels are built on the Ethereum network.