Aave Records New TVL Of $4.96 Billion As Its Token Reaches $520

Aave has seen its token price recently skyrocket by 76% since the start of February. Today, however, AAVE has reported a price of $520, a new all-time high for the DeFi token. As for the Aave protocol itself, it has managed to take second place in the world’s DeFi platforms in terms of Total Value Locked, or TVL. The protocol seems to be keen on outperforming its competitors and gaining more users.

Major Success For Aave

The AAVE token has seen its 24-hour trading volumes reach a staggering $2.4 billion, having risen from $284 at the start of November to its current price value.

This latest rally started just before February, on the 28th of January, 2021. The main driver for it was when the platform announced its new migration tool for Aave v2, allowing its users to migrate all account information to the new updated protocol with ease. This included borrowed positions and staked tokens, as well.

The DeFi platform has seen a steady increase in its key metrics ever since, with the protocol setting new record-highs on its TVL. Aave boasted $4.957 billion in TVL, as recorded on the 3rd of February, 2020. The only other protocol managing to beat Aave in terms of TVL is Maker.

Institutional Players Taking Interest

Aave is also making progress on other fronts, as a proposal was passed on the 2nd of February, 2021, by the community. This proposal saw the addition of Balancer (BAL) as a collateral cryptocurrency. Directly after this vote was passed, the AAVE token saw its price increase to $300 from $284.

AIP-9 for the activation of the Aave Balancer Pool Liquidity Staking is up for governance vote @BalancerLabs

✨If approved this proposal will start the Safety Incentives for ABPT (Aave Balancer Pool Token) stakers with SI set at 550 $AAVE/day

Vote 👇https://t.co/3RKhW5Jf8x

— Aave Labs (@aave) February 5, 2021

It should be noted, however, that AAVE’s massive parabolic rally to $520 can also be credited to institutional-scale investors taking an interest in the asset. Dahlem stated that it was mainly due to institutions and major players within the space that caused AAVE to shoot up by 90% in a week. These heavyweight players are starting to take a keen interest in the DeFi space.

A Budding New Industry

DeFi’s immense array of services within the sector continues to draw in new investors and gaining strength. Through the lending and staking of tokens, users are capable of earning yields, and everyone loves making money. Borrowing against one’s crypto assets is also an attractive option, as well as making use of governance proposals in order to drive the development of a protocol in question.

Time will tell how successful the space will be, and how involved institutional players will be. They’ve finally warmed up to cryptocurrencies, for the most part, so now the logical next step is the DeFi space.