Even a novice or a newbie in the crypto market would understand when he looks at various crypto charts because there is a bull run in the crypto market currently. Aside from the fact that seasoned analysts, experts, and traders are saying it, most digital assets in the crypto market show maximum gains.
While some of them have been trading in a high since last year, others have just taken on the momentum and are piling on massive gains for their customers. One such coin that is riding on the bullish momentum in the crypto market is Aave. Aave is not only trying to increase the profits of investors and traders that have kept faith in it; it is also trying to hit another all-time high record.
Various factors contributed to the success of Aave
Out of the various things that have contributed to the decentralized platform’s growth, the total value locked down and multiple fundamentals that have been improved are the major factors pushing it high.
Analysts and experts have also noted that another thing contributing immensely to the DeFi protocol’s growth is the recently released Aavegotchi, a collectibles token, and community-based on the decentralized finance sector. One fact that can not be overemphasized is that Aave was one of the 2020 DeFi boom success stories, which saw various DeFi protocols make massive mainstream news.
To back up the claim of its success, the digital asset moved to hit a massive record all-time high of $123.92 in 2020 as it previously traded around $2 at the beginning of 2020. The recent bullish run that the digital asset encountered saw it record 52.6% growth in the last few days, and analysts have said that the recent move by Coinbase was a trigger for the price of the token. Coinbase announced in the early part of December that it would list Aave token by Dec 15.
Aave is now the second-placed protocol in the decentralized finance sector
Going by several details that were shared by popular metrics website, Aave has displaced several protocols in the decentralized finance sector to place second due to its total value locked down.
Presently, Aave boasts of nothing less than $2.4 billion in total value that has been sent into the protocol. As it stands now, experts have noted a correlation in the total value locked down of the protocol and movement of the price of Bitcoin.
This means that if the total value locked down on Aave witnesses an increase, the price of Bitcoin in the market makes a surge to that effect. Another reason why Aave has enjoyed success is that the asides moving out of the Ethereum blockchain, the ability for the protocol to use layer 2 scaling solutions to trade Bitcoin on its protocol has been seen as a trigger. Aave is still trying to grow and has been doing remarkably well in that aspect.