With the continued rise of decentralized finance (DeFi), some of the top applications are seeing major price growth.

As the total value locked (TVL) in DeFi hovers around $25 billion, some of the top DeFi projects are seeing record prices. AAVE is one such project. AAVE is an open source and custodial DeFi protocol that enables users to earn interest on deposits and borrow assets.

Flipping Banking on its Head

 Does this sound like the framework of a traditional bank to you? Well, that’s because it is. However, with AAVE, the majority of fees and profits go into the hands of the platform users and supporters. According to defipulse.com, an analytics and ranking platform, AAVE is the second-highest ranked application by TVL (currently $3.63 billion).

The tremendous amount of value stored on the platform coincides with all-time high AAVE prices. The token just passed $250. Meanwhile, the total market capitalization of the network is closing in on $3 billion. At its current market cap, AAVE is the 15th largest blockchain network in the world.

Defi Explosion

This all-time high follows a 20 percent increase in price seen in the last 24 hours. Such jumps seem to be a common occurrence recently across the DeFi industry. Investors are more excited than ever about what the future will look like with these new decentralized financial products. As a result, people are looking outside of the top established tokens to try and generate alpha.

A lot of financial transactions are suitable for these decentralized platforms. This includes lending, decentralized exchanges, decentralized derivatives, and asset management. One of the most interesting aspects, though, is the platform being used to develop most of these applications.

When referencing the top chains by TVL on defipulse, we can see that only 1 of the top 63 chains by TVL isn’t running on Etheruem. Besides the Lightning Network, a layer 2 scaling solution for the Bitcoin blockchain, the remaining top 62 chains are built on the Ethereum network.

This shows the incredible domination of the DeFi industry by Etheruem, even though many ‘Ethereum killer’ smart contract platforms are trying to compete. With lending and storage platforms like AAVE hitting all time highs across a variety of metrics, we should see this trend continue into the future given current market conditions.

The post AAVE Hits New All Time High Price appeared first on BeInCrypto.

Source: Be In Crypto