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.

95cb029a 0b0c 4457 97b9 eb1b9de6e716
AAVE/USDT 4-hour chart. Source:

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.

4aeb9d4e 833e 4c35 9b06 16e2c80491d5
Total value locked (USD) in Aave. Source:

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.

8f24b260 b3cc 4647 b292 69ab0cf0418f
BTC/USD price (3 month). Source:

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.

Capitalizing on DeFi, Layer 2 tech and NFTs is catalyzing growth

Crypto is an ever-evolving sector and there is a tendency for the most active, ingenuitive tokens to hold their value and growth potential when compared to meme tokens and projects without roadmaps.

As the DeFi and NFT sector grew in popularity throughout 2020, the team launched Aavegotchi (GHST), a DeFi-enabled crypto collectibles project that combines DeFi characteristics with the growing trend of NFT’s and crypto collectibles.

GHST was launched as a DAO governed token sale, a DAICO, in which all raised funds were managed by the community. The platform allows users to collect, combine, and compete with their Aavegotchi’s in an ever expanding gamified experience.

Users can also stake their GHST tokens on the Aavegotchi platform to generate Frens, which can then be used to buy raffle tickets for specialized items or to summon new Aavegotchi’s.

By keeping abreast of emergeing trends within the crypto sector, the team appears to have strengthened their ecosystem and this possibly allowed AAVE to weather the sharp DeFi sector sell-off that occurred in mid-Ocotober.

During the DeFi correction, many tokens lost up to 80% of their value and AAVE and GHST token were not spared from the carnage. This led the team to delay launching its NFT platform and the most recent 70% rally from Ether (ETH) has forced the Aavegotchi team to delay their Ethereum mainnet launch due to soaring gas fees.

This week the team announced that instaed of launching on Etheruem, Aavegotchi will shift to the Matic Network for the time being.

The team confirmed this choice with the community and stated that OpenSea, one of the largest NFT marketplaces, will also be launching soon on Matic. These revelations coincided with an increase in MATIC price and in the past 24-hours the token rallied by 28%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.


1% deposit bonus on crypto in buyucoin

1% Deposit Bonus & Withdrawal Fees On Crypto Deposit in BuyUcoin

BuyUcoin giving 1% deposit bonus on crypto and reimbursement of crypto withdrawal fees for Indian user who have funds on banned crypto exchange. In the wake of the recent ban ...
Read More
Bitcoin ETFs

A Decade in the Making: US SEC Approves 11 Bitcoin ETFs, Igniting Market Enthusiasm

After years of anticipation and regulatory scrutiny, the U.S. Securities and Exchange Commission (SEC) has granted approval to 11 Bitcoin ETFs applications, marking a significant milestone in the cryptocurrency and ...
Read More
Will Bitcoin Price Increase 200% When Bitcoin ETF Is Approved?

Will Bitcoin Price Increase 200% When Bitcoin ETF Is Approved?

Everyone wants to know that bitcoin will Bitcoin Price Increase 200% When Bitcoin ETF Is Approved? We talk about the Bitcoin ETF, an important part in the cryptocurrency space. According ...
Read More

10 Must-Have Features on Bitcoin Staking Site

Crypto has provided many benefits for online gambling, and almost all relevant gambling sites now offer it as a payment method.  With so many gambling sites, players, especially those without ...
Read More
Christmas in the cryptocurrency world arrives early as the pre-holiday crypto market heats up

Christmas in the cryptocurrency world arrives early as the pre-holiday crypto market heats up

Happy Cryptomas to all of you! During the bullish state of the crypto market, margin-lending platforms and decentralised exchanges were the most often used DeFi protocols. Bitcoin is Up 167% so ...
Read More
Share with Others