The native token behind the popular DeFi Development money market Aave is up more than 30% in the last 24 hours amid a flurry of developments.
AAVE, the governance token that underpins the Aave protocol, is up more than 30% in the last 24 hours.
This puts the token at $235.92, according to data pulled from CoinMarketCap. This token, like many others in the decentralized finance (DeFi) world, is used to vote on protocol updates and participate in Aave governance measures.
The latest price movement comes in the wake of the latest protocol update and continued interest from large financial institutions.
Released on March 16, Aave V3 added cross-chain capabilities, Layer 2 scaling solutions, and reduced gas costs to interact with the money market.
The AAVE token was then trading at about $121, marking the start of a continued uptrend. The price is still more than 66% away from its all-time high of $666.86 set in May of last year.
Separately, the Brazilian central bank has also included Aave in its list of eight other partners to create its central bank digital currency (CBDC). Aave joined Santander Brazil, Mercado Bitcoin, Brazil Visa and Unibanco, among others.
Aave first launched in 2017 under the name ETHLend before rebranding about a year later. In that time, it has become one of the most popular decentralized finance (DeFi) protocols on the market, allowing users to lend and borrow a variety of different cryptocurrencies.
The returns, as well as the cost of borrowing different tokens, depend on the supply and demand for these tokens in the market. This means that the amount of interest users can earn on, say, the DAI stablecoin depends on how many users are interested in borrowing DAI. Today, you can earn 1.83% interest on DAI, while it costs 3.2% to borrow the token.
According to DeFi Llam, a DeFi-focused data panel, Aave's total value locked has increased by 11.38% in dollar terms over the past week. Total Value Locked, or TVL for short, refers to the total amount of money within the protocol.
The total amount of money across all integrated networks now stands at $22.93 billion, making Aave the largest DeFi protocol in this industry. Decentralized exchange (DEX) platform Curve is in second place, with $22.2 billion, followed by cryptocurrency platform Lido, which is the third largest, with $18.74 billion.
Including all DeFi Development Company projects on all networks, there is currently $283 billion circulating in the ecosystem.
At this time last year, that figure barely reached 85,000 million dollars.