Aave, a decentralized finance (DeFi) protocol, has been making headlines recently as its native token AAVE reached a 3-year high of around $395 this month. Currently trading at $333, the token has seen a 10% price increase in the last 24 hours, reflecting the overall growth in the DeFi sector.
Despite major cryptocurrencies like Bitcoin and Ether trading in the red for the past week, Aave has managed to regain its position as the top DeFi protocol. The total DeFi trading volume has reached $10.54 billion, reminiscent of the bull market days of 2021. With increased on-chain DeFi activity and whale activity, Aave has been on a continuous price surge since November.
The AAVE token price is currently at $333 with a market cap of over $5 billion, a 9% increase in the last 24 hours. The trading volume has also seen a significant 28% increase, standing at over $954.3 million. Aave’s total value locked (TVL) in its protocol hit a year high of over $22 billion earlier this month, although it is now slightly below $20 billion.
The surge in on-chain metrics such as TVL and fees on the Aave protocol has played a major role in driving up the price of the AAVE token. Additionally, favorable comments from President-elect Trump regarding crypto and investments from his family’s crypto project World Liberty Financial have added to the bullish sentiment around Aave. Whales have also been accumulating AAVE tokens in anticipation of further price increases in the new year.
The upcoming launch of Aave V4 and other upgrades such as token buybacks and burns are also contributing to the positive sentiment around the project. The increased Google search volume for “Aave” reflects the growing interest in the protocol. Aave has emphasized the importance of on-chain metrics growth in driving the price surge of its native token.
Overall, Aave’s recent price surge can be attributed to a combination of macroeconomic conditions, on-chain metrics growth, and positive developments within the project. As the DeFi sector continues to evolve and attract more users and investors, Aave seems to be well-positioned to benefit from the ongoing growth in the space.
