Aave Price Leads Altcoin Recovery, Here’s Possible Reason

The digital currency ecosystem is seeing a mixed reaction today and while the combined crypto market cap is down by 0.10%, decentralized lending protocol Aave is currently leading altcoin momentum.

Aave Price Jump and Possible Triggers

At the time of writing, Aave is changing hands at a spot price of $74.46 after printing a parabolic 29.04% growth in the past 24 hours. The coin has now extended its gains in the past month where it has increased its value by more than 45%. As it stands, Aave is one of the biggest beneficiaries of the recent price rally and is now trying to pare off the losses it has accrued in the past year.

The trigger for this growth is not far-fetched as the protocol has doubled down on its innovation with respect to its V3 engine. Over the course of the past week, Aave has expanded the number of assets that users can inject cash into or provide liquidity for to multiply their productivity.

Aave has also recorded a number of upgrades that now makes the usage of the platform more seamless for users.

The decentralized lending offering that Aave is known for has seen limited competition in the broader industry when compared to other niches like exchanges and memecoins. 

First Mover Advantage

Aave is one of the first lending platforms in the Decentralized Finance (DeFi) space and its consistency and first mover advantage has positioned it as a protocol under many user’s radar. 

The platform has stood the test of time, transitioned alongside Ethereum from the Proof-of-Work (PoW) system to the Proof-of-Stake (PoS) and has remained innovative with the launch of its stablecoin – GHO – and new versions of its lending outfit over the years.

The deep ties to Ethereum has also made it one of the lenders with the most reliable and robust liquidity, giving it the upper hand against other lending startups hosted on other chains across the board. 

Thus far this year, Aave has gained more than 43% in the Year-to-Date (YTD) period.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

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