The decentralized finance (DeFi) market has been undergoing a period of maturation over the past year and many of the rapid gains of the past year have faded into obscurity, but this does not mean that the previously โfamousโ protocols have not followed. developing.
One blue-chip project gaining momentum is Aave (AAVE), a non-custodial liquidity protocol that allows users to lend, borrow, or stake their assets for a return on their holdings.
Data of Markets Cointelegraph Pro and TradingView shows that the price of AAVE has risen 110% from a low of $114 on March 15 to a daily high of $242 on March 29, as its 24-hour trading volume increased 442% to $1.26 billion.
Three reasons for the price resurgence in AAVE have been the release of AAVE v3, the expansion of the protocol ecosystem, and the constant improvement of the fundamentals.
AAVE v3
Merchants have long anticipated the release of Aave v3, which was announced on March 16.
1/ Aave V3 is here!
The most powerful version of the Aave Protocol to date, V3 brings innovative new features ranging from greater capital efficiency to improved decentralization. Read what's new in V3 in the following thread or visit https://t.co/H3jTyKRqNs to dive in! pic.twitter.com/LXzn7660nA-Aave(aveAaveAave) March 16, 2022
According to Aave, the new features will help provide greater capital efficiency, increased security, and cross-chain functionality, while also helping to promote decentralization throughout the DeFi ecosystem.
Some of the new features include portals, which offer only "permit-listed" bridging protocols that have been approved by the Aave government to facilitate cross-chain transactions, a high-efficiency mode (E-Mode) that allows users get the most out of your collateral by providing increased borrowing power within the same asset class and an isolation mode that limits available collateral for newly listed assets as a way to help limit exposure and protocol risks .
Aave v3 is currently rolling out to Polygon, Fantom, Avalanche, Arbitrum, Optimism, and Harmony, with more integrations planned in the future.
Ecosystem Expansion
A second factor that has given AAVE new impetus has been the expansion of the Aave ecosystem, including launching on new networks and forming partnerships and integrations with other DeFi protocols.
In addition to now being available on seven different networks, Aave continues to explore new networks to launch, including Metis.
Aave has also seen an increase in support from wallet providers and Web3 aggregators, including Instadapp, Debank, 1inch, Paraswap, Zapper, DeFisaver, and Zerion.
Aave V3 has landed on Zapperโก๏ธ
follow your @aaveaave V3 wallet across six networks, including @0xPolygon, @avalancheavax, @arbitrum, @FantomFDN, @protocolharmonyand @optimismPBC!
Visit https://t.co/UvfknT87el For a start. pic.twitter.com/ASFFGNsTu4
โ Zapper โก๏ธ (@zapper_fi) March 21, 2022
Related: Aave launches v3 liquidity pool after unanimous government decision
TVL is on the rise
A third sign of Aave's strength can be found by looking at the community behind the protocol, which has continued to see new users on board the ecosystem despite the broader struggles of the DeFi sector.
According to data From Dune Analytics, there are now over 92,000 unique wallet addresses that have been compromised with the AAVE protocol. As the number of Aave-backed chains continues to increase, there is a strong possibility that this number will increase further in the future.
As a result of new users and the addition of support for new chains, the total value locked (TVL) in the protocol is on the rise again and currently stands at $13.99 billion according to data of DeFi Call.
The recent addition of support for liquid staking assets such as stETH from Lido Finance has also helped boost TVL on AAVE, possibly as ETH participants seek to maximize their return.
VORTECSโข data from Markets Cointelegraph Pro began spotting a bullish outlook for AAVE on March 24, prior to the recent price hike.
Exclusive to Cointelegraph, the VORTECSโข Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements, and trading activity. Twitter.
As seen in the chart above, the VORTECSโข score for AAVE rose to a high of 73 on March 24, about an hour before the price began to rise 45.8% over the next five days.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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