AAVE Leads DeFi Rebound With Strong 24 Hours
AAVE leads other major DeFi projects during overall market rebound.
Covered:
- AAVE Up 10%
- Future Of Aave
- NFT And DeFi’s Unlikely Relationship
- Market Up After Rough Start To Week
AAVE Up 10%
AAVE 24 Hour Price Chart. Credit: CoinMarketCap.com
DeFi protocol AAVE is up 10 percent leading all other major DeFi projects in the last 24 hours. AAVE is trading in the $350 USD range, after hitting a low of $305 just a week ago.
AAVE launched in 2017 as ETHLend before rebranding. The DeFi lender allows users to borrow and lend crypto without an intermediary. According to DeFi Pulse, it is the biggest lender in decentralized finance, with over 13 billion USD currently locked.
Top DeFi Lenders. Credit: DeFiPulse.com
Overall, AAVE is trading far below its all-time high. The protocol (whose name is derived from the Finnish word ghost) reached $666 on May 18th. Nevertheless, the ROI on AAVE, even trading at almost half of its high, is over 66,000%.
AAVE’S Future
AAVE’s price surged back in July after it announced the launch of AAVE Pro. AAVE Pro is their permissioned version of their protocol, which allows institutional investors to delve into DeFi without the regulatory baggage.
AAVE is also not just just staking its future on DeFi and institutional investors by delving into NFTs with AAVEGOTCHI. AAVEGOTCHI is a yield generating NFT collectible. Its first drop of 10,000 sold out in less than 60 seconds.
AAVEGOTCHI is developing a bid-to-earn system for future drops. Users who lose bids will earn ETH toward future transactions.
NFTs And DeFi’s Unlikely Partnership
Recommended: For more on AAVE and how it works, check out our guide.
Overall, DeFi was rangebound over the summer of 2021. Summer of 2020 saw DeFi protocols like Compound make huge gains, getting as has high $372, thanks to innovations in yield farming. Many had hoped for a repeat of DeFi Summer, but decentralized finance protocols lost the summer modifier battle to NFTs.
Namely, OpenSea, the biggest NFT marketplace going, saw its daily volume rise as high as 300 million in August. In perspective, OpenSea’s daily volume hovered in the 1 million range in May. As well, NFTs on Solana made major inroads. Not to mention, the Iron Finance fiasco didn’t help either. Especially with Mark Cuban calling for the regulation of a space that’s by definition decentralized.
However, it appears NFTs and DeFi are merging. The latest craze in the NFT world is Yield generating NFTs. For example, Cyber Kongz yield $200 worth of bananas day just for owning one of the Cyber Kongz. The yield can then be used to produce offspring which generate even more value for owners.
Market Up After Rough Start To Week
Total Market Cap. Credit: CoinMarketCap.com
The market is up 5 percent today. Total market cap is around 2.1 trillion, up from 2 trillion yesterday.
Cryptocurrency prices saw incredible volatility as a result of the Litecoin fake news. But it appears to have recovered with DeFi leading the way.
Market sentiment appears to be improving with news of a potential golden cross. However, some bears are calling for sub 40k.
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Text source: CryptosRus
