Home Coins Ethereum (ETH) AAVE price soars to $123 all-time high as TVL rises and fundamentals...

AAVE price soars to $123 all-time high as TVL rises and fundamentals improve

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As the crypto bull market continues to gain traction, the price of Aave’s native token, (AAVE), is pushing toward new all-time highs.

The growth of the decentralized lending platform appears to be bolstered by improving fundamentals, steady growth in the total value locked on the platform, and the creation of a DeFi based crypto-collectibles token and community called Aavegotchi,

Unarguably, Aave was one of the DeFi success stories of 2020, as its price rose from $2 in January 2020 to today’s all-time high at $123.92.

AAVE/USDT 4-hour chart. Source: TradingView.com

The most recent breakout saw the price rally by 52.6% in the past 3 days and a number of analysts attribute part the upmove to the “Coinbase ffect,” after the top U.S. crypto exchange announced plans to list AAVE on Dec.15.

AAVE tracks Bitcoin’s progress

According to DeFi Pulse, Aave is now the second-ranked DeFi platform according to the total value locked metric with a total of $2.41 billion currently entrusted to the platform.

Total value locked (USD) in Aave. Source: defipulse.com

The platform also appears to show a correlation between total value locked on the platform and the price movement of BTC. As shown in the price chart below, as the BTC price appreciates, so does the amount of value locked on the Aave platform.

BTC/USD price (3 month). Source: Cointelegraph.com

Choosing to expand beyond Ethereum to the wider crypto economy, and the ability to trade BTC on top of the Ethereum protocol via layer-2 solutions, looks to have been a key part in the growing success of Aave and its expanding decentralized finance offerings.