The price of the native token of the leading crypto lending platform, Aave, has been on a steady rise over the past three days.
Yesterday, the token surged by more than 5% and hit a high $198.02 before pulling back to its current price of $185.70. Today it is still in the green though with a rise of 1.02% over the last 24 hours.
This article delves into the factors contributing to the current AAVE price.
Why has AAVE price been rallying?
Before we delve into the current uptrend, it is important to first explain what Aave is for the purposes of anyone coming across the term for the first time.
In a nutshell, Aave is a DeFi protocol that enables people to borrow and lend in cryptocurrencies. Its native token is called AAVE.
Now let’s look at what is happening behind the scenes and making the price of AAVE to rise.
AAVE V3 going live on Avalanche
AAVE token seems to be riding on the announcement by the head of DeFi Aave Labs via a tweet saying that AAVE version 3 (AAVE V3) liquidity mining is live on Avalanche blockchain, meaning Avalanche users can now earn rewards by providing liquidity to DeFi protocols on the Avalanche blockchain.
🚨 @AaveAave v3 Liquidity Mining on Avalanche is now LIVE! Migrate assets over from Aave v2.
Please note that only native $USDC & $USDT are listed on Aave v3.
Swap from $USDC.e & $USDT.e to native forms to deposit.
— Luigi D'Onorio DeMeo 🔺 (@luigidemeo) April 19, 2022
It’s also important to also note that the price of AAVE had also surged in March once it launched its version 3 update that introduced support for cross-chain transactions as well as reduced gas fee.
The recent move of launching AAVE V3 on Avalanche comes after the community voted for the deployment on Avalanche back in October last year; a move that was informed by the many DeFi applications being launched on Avalanche.