AAVE price rises to an all-time high of $ 123 as the TVL rises and fundamentals improve


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As the crypto bull market continues to gain momentum, the price of Aave’s native token (AAVE) is pushing for new highs.

The growth of the decentralized lending platform seems to be helped by improving fundamentals, steadily growing the total value locked on the platform, and creating a DeFi-based crypto collectible and community called Aavegotchi.

Undeniably, Aave was one of the DeFi success stories of 2020 as its price jumped from $ 2 in January 2020 to today’s all-time high of $ 123.92.

AAVE / USDT 4 hour chart. Source: TradingView.com

The most recent breakout has seen the share price jump 52.6% over the past three days, and a number of analysts attribute some of the rise to the “Coinbase Effect” after the leading US crypto exchange announced plans, AAVE listing on December 15th.

AAVE tracks the progress of Bitcoin

According to DeFi Pulse, Aave is now the second tier DeFi platform on the Total Value Locked metric with a total volume of $ 2.41 billion currently entrusted to the platform.

Total Locked (USD) in Aave. Source: defipulse.com

The platform also appears to have a correlation between the total value locked on the platform and the price movement of BTC. As shown in the price table below, as the BTC price appreciates, so does the value locked on the Aave platform.

BTC / USD price (3 months). Source: Cointelegraph.com

The decision to expand beyond Ethereum into the broader crypto-economy and trade BTC via Layer 2 solutions in addition to the Ethereum protocol appears to have been a major factor in the growing success of Aave and its growing decentralized financial offerings.