AAVE price soars to $123 all-time high as TVL rises and fundamentals improve

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Because the crypto bull market continues to acquire traction, the price of Aave’s native token, (AAVE), is pushing towards new all-time highs.

The expansion of the decentralized lending platform seems to be bolstered by bettering fundamentals, regular development within the complete worth locked on the platform, and the creation of a DeFi based mostly crypto-collectibles token and neighborhood referred to as Aavegotchi,

Unarguably, Aave was one of many DeFi success tales of 2020, as its price rose from $2 in January 2020 to as we speak’s all-time high at $123.92.

AAVE/USDT Four-hour chart. Supply: TradingView.com

The latest breakout noticed the price rally by 52.6% up to now three days and quite a lot of analysts attribute half the upmove to the “Coinbase ffect,” after the highest U.S. crypto alternate introduced plans to checklist AAVE on Dec.15.

AAVE tracks Bitcoin’s progress

In accordance to DeFi Pulse, Aave is now the second-ranked DeFi platform in accordance to the full worth locked metric with a complete of $2.41 billion at the moment entrusted to the platform.

Complete worth locked (USD) in Aave. Supply: defipulse.com

The platform additionally seems to present a correlation between complete worth locked on the platform and the price motion of BTC. As proven within the price chart under, as the BTC price appreciates, so does the quantity of worth locked on the Aave platform.

BTC/USD price (three month). Supply: Cointelegraph.com

Selecting to develop past Ethereum to the broader crypto financial system, and the flexibility to commerce BTC on prime of the Ethereum protocol by way of layer-2 options, seems to have been a key half within the rising success of Aave and its increasing decentralized finance choices.