Choose your language:
The price of AAVE surged 40% since the start of the new year following a Coinbase listing last month and the Aave Protocol V2 launch
AAVE yesterday hit an all time high of $123.96, following a surge of 40% since the start of 2021. This represents huge gains since this time last year when its price was hovering around just $2.
Aave also recently overtaken Uniswap to become the second-ranked decentralised finance (DeFi) platform with $2.64 billion in total value locked (TVL), according to data from DeFi Pulse. In fact, 2020 was a great year for the whole DeFi sector, growing from around $600m in TVL last January to end the year at over $14 billion.
AAVE’s recent price surge could be due in part to the ‘Coinbase effect’ – the exchange listed AAVE on 15 December, following AAVE listings on several other exchanges including Binance, Gemini and Kraken.
Another factor could be the launch of the Aave Protocol V2 on its mainnet last month. V2 offered many new features such as the ability to trade assets while they are being used as collateral and swap them to get the best yields on the market. V2 also saw Aave upgrade their Flash Loans, tokenise debt and introduce gas optimisations, which can lower the cost of protocol transactions on Ethereum by up to 50%.
Other milestones for Aave over the last year include becoming more decentralised by handing over the admin keys to the community and surpassing $1 billion in Flash Loans volume last month.
Many continue to be bullish on Aave. Lito Coen, creator of crypto onboarding website Cryptotesters, tweeted yesterday: “My favourite defi protocol is @AaveAave. Imo there is no way that it won’t 10x in the next 2-3 years. It’s the clear category leader in lending, which in return is the fastest growing sector in DeFi and the one i’m most certain will prevail.”
As for what’s next for Aave, they have teamed up with ETHGlobal to host the MarketMake hackathon which kicks off next Friday, and there is also the launch of the Aavegotchi NFT game to look forward to. This was originally due to take place on 4 January, but insanely high gas costs and extreme volatility on the Ethereum network led Aavegotchi to delay their mainnet launch. However, the team provided some hope when they tweeted this week that the game would be moving to Matic Network.
Keep updated with our round the clock and in-depth cryptocurrency news.
Unsub anytime
No SPAM ever!
After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.
Please be aware that some of the links on this site will direct you to the websites of third parties, some of whom are marketing affiliates and/or business partners of this site and/or its owners, operators and affiliates. We may receive financial compensation from these third parties. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services.
Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.
CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.
When trading in stocks your capital is at risk.
Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.
AAVE hits new all time high of $123 as TVL reaches $2.64Bn
