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Through the latest surge in the price of the DeFi giant Aave, the Total Value Locked (TVL) has also increased in a corresponding manner.
Decentralized Finance (DeFi) lending giant Aave has recorded a new milestone as its price soared to a new all-time high on Thursday. According to CoinMarketCap, the DeFi token soared to $506.81 after seeing immense buying activity from enthralled investors. For a token that is less than a year old, Aave has positioned itself as one of the best performing DeFi tokens to date.
This year alone, AAVE has seen more than 350% growth and it is currently trading at $491.85, an increment of 16.2% in the past 24 hours. Aave’s latest performance has contributed to the growth of its market capitalization to $6,018,466,626.75, a figure that has seen a 17.72% increase in the past 24 hours.
Besides being seen as a token with potentials for long-term growth, Aave has one of the strongest business fundamentals in the DeFi ecosystem with innovative products to back it up. Its flash loan product has garnered a massive embrace especially by traders taking advantage of the arbitrage opportunity present in the space.
The meteoric rise of the Aave protocol can also be attributed to the healthy and responsive community the project maintains. The Aave protocol has been able to communicate its work in progress as well as address any form of negative assumptions about the long term potentials of the protocol and its entire offerings.
DeFi Giant Aave Also Sees Uptick in Total Value Locked
Through the latest surge in the price of the DeFi giant Aave, the Total Value Locked (TVL) has also increased in a corresponding manner. According to DeFi Pulse, Aave’s TVL has risen by 8.06% to $5.44 billion, solidifying Aave’s position as the second-largest DeFi project by value locked in USD. Aave also comes off as the 13th largest virtual currency by market cap according to CoinMarketCap.
The entire growth of Aave might be due to the presence of institutional investors that are gradually showing their interest in DeFi by accumulating a significant portion of the tokens. Cointelegraph’s Dahlem recently noted that:
“Billionaire Mark Cuban recently spoke about the “unlimited upside” of DeFi and according to a snapshot of his on-chain portfolio, he is an AAVE whale holding more than $150,000 worth of the token. Grayscale recently filed more than a dozen altcoin trusts with Delaware’s corporate registry, one of those altcoins being AAVE. Additionally, Bitwise added AAVE to their Bitwise 10 Large Cap Crypto Index. These announcements have caused investor sentiment to reach a new YTD high of 83.5 (very high).”
This does not just confirm the brewing interest in Aave and DeFi in general, it best explains the bullish 350% surge recorded thus far this year. As Aave journey’s onto maturity, the brains behind the project are continually making improvements to the protocol with the rollout of more value-packed offerings to its growing community of users and investors.