The decentralized finance (DeFi) market has gone through a maturity period over the past year and many of the fast-emerging past years have faded into obscurity, but that doesn’t mean that the “famous” protocols of the past can’t continue to be built. Used to be.
One blue-chip project that is gaining momentum is Aave (AAVE), a non-custodial liquidity protocol that allows users to lend, borrow or stake their assets to earn yields from their assets. gives.
Data from Cointelegraph Markets Pro and TradingView shows that AAVE price rose 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 by 442%. increased to $1.26 billion.
Three reasons for the price resurgence in AAVE are the release of AAVE v3, the expansion of the protocol’s ecosystem, and the continual improvement of fundamentals.
AAVE V3
Traders have long anticipated the release of Aave v3 which was announced on March 16th.
1/Awe v3 has arrived!
— Aave (@AaveAave) 16 March 2022
The most powerful version of the AAV protocol to date, v3 brings unprecedented new features from increased capital efficiency to decentralization compared to the previous period. Read what’s new in V3 in the thread below or visit https://t.co/H3jTyKRqNs to dive in! pic.twitter.com/LXzn7660nA
According to Aave, the new features will help provide greater capital efficiency, enhanced security and cross-chain functionality, while also helping to promote decentralization in the DeFi ecosystem.
Some of the new features include Portal, which only offers “permit listed” bridge protocols that have been approved by the EVE government to facilitate cross-chain transactions, a high-efficiency mode (e-mode) that allows users to access the most allows removal. Their collateral by providing a higher lending power within the same asset category and an isolation mode that limits the available collateral for newly listed assets as a way of helping to limit the risks and risks of the protocol.
Aave v3 is currently deployed on Polygon, Phantom, Avalanche, Arbitrum, Optimism, and Harmony, with more integrations planned in the future.
ecosystem expansion
The second factor driving new momentum in AAVE is the expansion of the AAV ecosystem, which includes launching on new networks and partnerships and integration with other DeFi protocols.
In addition to being now available on seven different networks, Ave continues to explore new networks to launch, including Metis.
Away has also seen rapid support from wallet providers and Web3 aggregators, including Instadap, Daybank, 1Inch, Paraswap, Zapper, DefiServer and Xerion.
Aave V3 Zapper⚡️ . has landed on
track your @awewe V3 portfolio across six networks which includes @0xPolygon, @avalancheavax, @arbitrum, @PhantomFDN, @harmonyprotocolAnd @optimismpbc,
Visit https://t.co/UvfknT87el to get started. pic.twitter.com/ASFFGNsTu4
— Zapper ️ (@zapper_fi) 21 March 2022
Connected: Aave launches v3 liquidity pool after unanimous ruling
TVL is rising
A third indication of the strength of Aave’s build can be found by looking at the community behind the protocol, which has continued to see new users in the ecosystem despite widespread struggles in the DeFi sector.
According to data from Dune Analytics, there are now over 92,000 unique wallet addresses that are linked to the AAVE protocol. With the steady increase in the number of chains supported by Away, there is a strong possibility that this number will increase in the future.
As a result of new users and new chain support, the total value locked (TVL) on the protocol is rising once again and currently stands at $13.99 billion, according to DeFi Lama data.
Recent support for liquid staking assets such as stETH from Lido Finance has also helped boost TVL on AAVE, possibly because ETH stakers are looking to maximize their returns.
VORTECS™ data from Cointelegraph Markets Pro began to trace a bullish outlook for AAVE on March 24th, ahead of the recent price increase.
The VORTECS™ Score, exclusive to Cointelegraph, 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 Twitter activity.
As seen in the chart above, the Vortex™ score for AAVE climbed to a high of 73 on March 24, about an hour before the price rose 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, so you should do your own research when making a decision.
