DeFi token Aave (AAVE) broke its own price record by going above $ 240. Aave, which is valued threefold in a month, will become one of the largest 15 cryptocurrencies if it surpasses Bitcoin SV, which is one row ahead.
DeFi tokens do not mind the stagnation in bitcoin price. Uniswap from 20 percent; Synthetix gained more than 10 percent, Sushi more than 15 percent. Accompanying them, Aave increased its market value to 3 billion and its price to almost $ 250, breaking a record.
$ 3.6 billion of the $ 25 billion DeFi world comes from the Aave ecosystem. This project, known as ETHLend in 2017, was named Aave as a result of the change in 2018. The Aave token, which entered the market in October 2020, increased from $ 50 to $ 248.
Aave ecosystem overview
It offers users a decentralized lending experience. Aave, which supports cryptocurrencies such as Dai, Uni, YFI; Collaborates with other projects such as Curve, 1inch, Synthetix.
Aave stands out with its self-developed flash loan feature. In this way, people can take out loans instantly without any underlying assets. The flash loan, which enables decentralized borrowing from the liquidity pool, is a first in the DeFi world. Someone who buys a flash loan has to pay back this loan within the same transaction block. With the interest.
This liquidity pool keeps Aave afloat. Borrowers from this pool do their own business, while those who contribute to this pool earn interest income.
Has 3.6 billion dollars liquidity
There is more than $ 3.6 billion of liquidity in the Aave ecosystem. According to the table compiled by Messari’s founder Ryan Selkis;
- 21.5% is Ether,
- 21% LINK,
- 16.1% WBTC
- Aave 15.9%
- the remaining 25.5% is made up of various tokens.
Individuals and organizations in this ecosystem are thought to generate 2.1 million dollars of revenue throughout the week. $ 1.1 million of this is due solely to interest payments. 41.3 percent of the income is reserved for depositors, 32.5 percent for liquidity providers, 25 percent for staking, and 1.2 percent for the ecosystem in general.
The DeFi world continues to grow and develop
The record breaking of DeFi tokens in general, and Aave in particular, is an indication that the decentralized financial world is growing. Dune Analytics data shows that the total volume of decentralized exchanges has grown eightfold since the summer of 2020, which more clearly conveys this growth.
DeFi projects are advancing technologically as a result of this growth and increasing demand. Developers trying to solve the scaling problem started to switch to Layer 2. An example of this happened in the Aave ecosystem on 20 January. ATokens within the platform were transferred to Matic Network with L2 technology.