Key Points
- AAVE price surged by 5% today, reaching over $105.
- The Aave platform hit a new ATH in weekly active borrowers.
Aave (AAVE) price surged by over 5% today, reaching prices over $105. At the moment of writing this article, AAVE has a total market cap of over $1.56 billion.
The lending and borrowing platform Aave hit a new record in weekly active borrowers, according to the latest reports.
In a post on X on August 14, Aave founder Stani Kulechov revealed that Aave hit an ATH in weekly active borrowers last week.
According to his post, the total weekly borrowers reached almost 40,000.
Borrowers market is led by emerging lenders including Base and Scroll. According to official data from Dune, Base now represents 29.6% of the AAVE V3 crosschain total users.
The same reports reveal that Arbitrum and Polygon come next with 23.4$ and 21% respectively.
He shared that Aave almost hit a new record on weekly depositors as well, over 40,000.
There is a growing narrative within the crypto community that DeFi is on the rise again as protocols show strong signs of recovery.
Arthur Cheong founder of Defiance Capital commented on the save growth on X and said that the mismatch between growth and valuation is where you get the best R/R for investing.
He also said that people are still asking where is the 10x growth of DeFi coming from when we already witnessed a 3x growth in user metrics of Aave on year to year basis, with the bulk of the growth coming from Q2 till now which was a brutal correction or mini bear market.
What is Aave?
Aave is a decentralized crypto platform allowing users to borrow and lend crypto. Aave is using smart contracts to automate the process and it has preset rules on the following:
- How funds are distributed
- How collateral is handled
- How fees are assessed
Aave is specialized in overcollateralized loans which means that users will need to deposit crypto worth more than the amount they wish to borrow.
This protects users from losing money due to loan defaults and allows the Aave protocol to liquidate the collateral if its value drops too much.
AAVE is an Ethereum token that powers Aave.
