The most recent update to the loan and borrowing process Aave has sparked a surge in purchasing activity.
According to CoinMarketCap data, the project’s native ERC-20 token AAVE, which is used for staking and governance on the platform, has increased by more than 17 percent in the last 24 hours.
At the time of writing, AAVE was trading at little over $147, which is still roughly 80% down than the token’s all-time high of $632, set in May 2021.
Aave’s recent price movement has been mostly influenced by the release of its long-awaited “V3” upgrade.
Integrations with various Layer-2 scaling solutions, optimizations for gas prices, a slew of new crypto wallet integrations, and more are among the updates.
1/ Aave V3 is here! 👻
The most powerful version of the Aave Protocol to date, V3 brings groundbreaking new features than span from increased capital efficiency to enhanced decentralization. Read what’s new in V3 in the thread below👇or visit https://t.co/H3jTyKRqNs to dive in! pic.twitter.com/LXzn7660nA
— Aave (@AaveAave) March 16, 2022
Aave, formerly known as ETHLend in 2017, is the largest protocol in the decentralized finance (DeFi) market in terms of total value locked (essentially another way of saying how much money is held inside a project).
Aave commands a massive $19.37 billion, according to DeFi Llama, a statistics dashboard for all things DeFi. With a total market capitalization of more over $250 billion, Aave controls nearly 7% of the market.
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Runners-up include the Terra-based Anchor Protocol and the decentralized exchange (DEX) Curve Finance.
The remainder of the DeFi market
Other blue-chip tokens in the DeFi market, such as Maker (MKR) and Synthetix (SNX), have also seen significant double-digit gains in the last 24 hours, with both tokens up more than 10%.
Maker serves as a form of central bank for DeFi, converting Ethereum deposits into the stablecoin DAI. The loans are overcollateralized, which means you must deposit more Ethereum (in dollars) than you would receive in DAI. Nonetheless, it is one of the market’s oldest decentralized stablecoins.
Synthetix, for its part, rose to prominence by promising multiple crypto versions of more traditional assets such as gold, oil, equities, bonds, and cryptocurrency for usage within the Synthetix ecosystem.
Compound, another Ethereum-based lending system, is up more than 7%, and SushiSwap, a forked version of the popular DEX Uniswap, is up more than 8% in the last 24 hours.
Ethereum, the foundation network upon which these DeFi projects are constructed, is currently up more than 3% on the day and nearly 7% on the week.