The native token of leading crypto lending platform Aave has steadily risen over the past three days.
Yesterday the token climbed more than 5%, reaching a high of $198.02 before pulling back to the current price of $185.70. It remains in positive territory today, up 1.02% over the last 24 hours.
This article examines the factors currently influencing AAVE’s price.
Why Is AAVE’s Price Rising?
Before diving into the current bullish trend, it helps to briefly explain what Aave is for readers encountering the term for the first time.
In short, Aave is a decentralized finance (DeFi) protocol that enables users to lend and borrow cryptocurrencies. Its native token is called AAVE.
Now let’s look at what’s happened recently that has helped push AAVE’s price higher.
AAVE v3 Launches on Avalanche
Market excitement appears tied to an announcement by Aave Labs’ head of DeFi via Twitter that Aave v3 liquidity mining is live on the Avalanche blockchain. This means Avalanche users can earn rewards by supplying liquidity to the Aave protocol on that chain.
🚨 @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 worth noting that AAVE’s price also rose when v3 launched in March, an upgrade that added cross-chain transaction support and reduced gas costs.
The recent deployment of Aave v3 on Avalanche follows a community vote to approve the deployment last October. The decision aligns with a broader trend of DeFi applications launching on Avalanche and reflects continued developer and user interest in the network.