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Top decentralized finance (DeFi) coins such as AAVE are outperforming over the past day. While Bitcoin and Ethereum are both up massively today, AAVE is up 18.5% in the past 24 hours alone. This performance makes it the best-performing digital asset in the top 100 by market capitalization. AAVE is now up by approximately 10% on the week, per CoinGecko data.
This rally highlights a growing/continued interest in DeFi, which has continued to gain fundamental strength despite shaky price action. The number of DeFi users is soon expected to reach one million, by some estimates, making it one of the first crypto technologies to be adopted by many.
Aave stands to benefit from this trend as it sits at the core of the ecosystem as a money market for lending and borrowing.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
AAVE Erupts 20% Higher
AAVE is up 20% in the past 24 hours alone amid strength in the price of ETH.
Ethereum has gained around 5% in the past 24 hours, pushing to $580 after consolidating under $540 for a number of days.
These gains to be trickling down to top Ethereum-based coins such as AAVE.
AAVE is one of the leading Ethereum-based, DeFi coins, touting a valuation of $890 million. It is a governance token that allows users to govern the Aave protocol; the coin is also used as a backstop for the protocol in case of a glitch.
This latest leg higher comes as Aave has set a key milestone. As pointed out by Marc Zeller, who is part of the Aave core team:
“The 3 comas club has a brand new member with the @AaveAave Flash loans. 1 Billion thanks to all the devs being pioneers of innovation, @DeFiSaver @fifikobayashi, and all the others. Can’t wait to see y’all all experiment with Seamless Loans made possible with @AaveAave v2.”
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
DeFi Back in Vogue
This rally comes as the fundamentals of the DeFi space have continued to improve at a rapid clip.
According to top data tracker DeFi Pulse, the total locked value of coins in decentralized finance contracts just surmounted $14 billion.
This is up from approximately $500 million, where this metric started in 2020.
Analysts are optimistic that there will be further growth in the DeFi space amid positive technological and price developments. This should result in further growth in the values of top coins pertaining to the space.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Aave Surges 20% as DeFi Coins Begin Resurgence, Following Ethereum Rally
Image Credit: Refer to Source
Author: Refer to Source Nick Chong