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Having rallied over 16% in the past 24 hours, Aave (LEND) is trading around $0.849. The rally is attributed to more than one fundamentals but notably, Aeve recently received an Electronic Money Institution license from the UK Financial Conduct Authority.
With the decentralized finance ecosystem leading the anticipated cryptocurrency bull rally, Aave (LEND) has taken the investors attention lately. At the time of reporting, LEND was leading the DeFi ecosystem with around $1.55 billion locked in its system. It has rallied over 16% in the past 24 hours to hit it’s all time high around $0.86. The asset has a market capitalization of around $1.065 billion at the time of publication and daily traded volume stood at around $337 million. Notably, LEND has rallied over 45% in the past one week, over 110% in the past two weeks, slightly above 210% in the past one month, and over 21,000% in the past one year.
The huge rally in such a short period can be attributed to several fundamental factors that have been playing in favor of the project in the given period. This comes even with the huge competition from other DeFi projects like Maker that controls approximately $1.42 billion in locked assets, Curve Finance that has around $1.16 billion in locked assets at the time of publication, Yearn Finance that owns $841 million, Synthetix with approximately $802 million, and Compound that has around $801 million according to metrics provided by DeFi pulse.
With over $7 billion total locked assets in the DeFi ecosystem, Aave has a dominance of around 21.81% at the time of publication. This makes its native coin poised to crazy speculation trading by traders and digital assets investors. The rise in the LEND coin has dethroned leading digital assets in the market including Bitcoin, Ethereum and also XRP that are still struggling to break above critical resistance levels.
Closer Look at Aave (LEND) Project
According to the original whitepaper, Aave is a decentralized non-custodial money market protocol where users can participate as depositors or borrowers. On the one hand, depositors are able to provide liquidity to the market hence earning a passive income. On the other hand, the borrowers are in a position to borrow in an overcollateralized or undercollateralized manner.
With the huge demand of its services in the global market, Aave received an Electronic Money Institution license from the UK Financial Conduct Authority. This only came to assist the ongoing global cryptocurrency adoption push meant to revolutionize the financial market. According to Aave’s CEO, Stani Kulechov, the FCA approval aligns with the company’s future plans for the protocol and will help to bring new partners into the ecosystem.