AAVE secures top gainer spot with 9% surge in 24 hours

Decentralized crypto lending platform Aave experienced a 9% price increase on the morning of August 15, becoming the best-performing platform in the cryptocurrency market.

At the time of writing, the price of Aave (AAVE) was 8% higher at $106.4, while its daily trading volume increased by 78% to around $262 million. Aave’s market cap reached $1.57 billion, ranking it 54th among the largest cryptocurrencies.

AAVE 24-hour price chart — August 15 | Source: crypto.news

Despite the recent price increase, Aave is still 84% below its all-time high of $661.69 recorded on May 18, 2021.

Aave operates as a decentralized platform on a 12-blockchain network, specializing in overcollateralized loans. Users can deposit cryptocurrencies to receive loans through smart contracts that automate the entire process, including fund distribution, collateral management, and fee assessment.

The recent surge in Aave’s price coincides with a broader recovery in decentralized finance protocols, particularly in lending and borrowing platforms.

Aave has set a new record for weekly active borrowers, according to a post by founder Stani Kulechov on X on August 14. The platform reached nearly 40,000 active borrowers in a single week, surpassing the previous record set in late 2022.

This growth has been fueled by the emergence of new lending marketplaces like Base and Scroll. Base (BASE) now accounts for nearly 30% of unique wallets on Aave V3, with Layer-2 platforms Arbitrum (ARB) and Polygon (MATIC) following closely behind with 23.4% and 21% wallet shares, respectively, according to Dune Analytics.

Kulechov also noted that the number of weekly depositors on Aave is approaching peak levels. Earlier this month, data from Dune Analytics showed a significant increase in the number of Aave depositors.

According to DeFiLlama, Aave is currently the third-largest DeFi protocol by total locked value, with a reported TVL of $11.85 billion. While the protocol’s TVL has increased by 70% this year, it remains below its peak of nearly $20 billion in October 2021.

The Aave token is currently trading inside a sideways channel pattern, which indicates a sideways trend with the $115 resistance levels and the $80 support levels.

Technical indicators for 2023 look positive. The 50-day moving average points to an uptrend, while the 14-day Relative Strength Index is at 50.74, indicating a neutral position and the potential for sideways trading to continue.

Throughout 2023, Aave has introduced several major updates, including improved lending and borrowing features, improved security, and the integration of new DeFi protocols. The community has also approved a fork called Seamless, designed to offer an alternative decentralized lending solution.

Earlier this year, Aave’s token price surpassed $100, and by June, wallets holding staked AAVE accounted for 17.09% of the token’s total supply, suggesting that the platform’s adoption is growing.