Aave Price Reaches 3-Year High Following On-chain Metrics Growth

• Aave price reached a 3-year high of around $395 this month, after TVL, fee, and revenue growth. 
• AAVE token is currently trading at $333, with around 10% price rise in the last 24 hours. 

Since the return of the bull run as the year comes to end, several altcoins recorded huge price surges following Bitcoin. However, the major cryptocurrencies are trading in red for the past week, Bitcoin and Ether returning to $95K and $3.3K price ranges respectively. The total DeFi trading volume is reminiscent of the days of 2021, amounting to $10.54 billion. 

Aave regained its position as the top DeFi protocol, similar to the times of the 2021 bull run. With increased on-chain DeFi activity and whale activity, Aave token has been recording continuous price surge since November this year. 

The AAVE token price is trading at $333 at the press time, with a 10% daily price rise. Its market cap is over $5 billion, increased by 9% in the last 24 hours. The trading volume is over $954.3 million, which has also increased by a significant 28% in the last 24 hours. 

Aave Price Reached 3-Year High This Month

AAVE token price recorded a 3-year high of around $395 on December 17, this year. The last time it recorded this price range was in September 2021. There are multiple major reasons behind this price surge, including the macroeconomic conditions and Aave developments.

The increase in on-chain metrics has contributed largely to the price surge of Aave tokens. As per DeFi analytics platform DeFiLlama, total value locked in Aave DeFi protocol recorded a year-high value of over $22 billion earlier this month. It is now standing slightly below the $20 billion mark. 

Coming to the fees on Aave, it has also witnessed significant growth this year, considering increasing on-chain activity. The year-time highs of on-chain metrics such as fees and total value locked has also contributed to the price surge of Aave. 

President-elect Trump’s favorable crypto stance added broadly to the overall crypt market surge. On the other hand, the Trump family’s crypto project World Liberty Financial made significant investments in Aave, along with other cryptocurrencies. Several whales also continued to purchase AAVE tokens, anticipating more price surge in the new year. 

Additionally, the buzz around Aave V4 launch is also stirring interest among the community members. The Aave DeFi protocol is also planning to launch its umbrella upgrades such as token buybacks and burns. In line with the price surge this month, the Google search volume for “Aave” has also increased. Overall, Aave emphasized the importance of on-chain metrics growth in leading the native token’s price surge. 

Highlighted Crypto News Today: 

Is Elon Musk’s Latest Tweet About Dogecoin the Start of a New Rally?