Aave AAVE/USD is a decentralized finance protocol that lets people lend as well as borrow cryptocurrencies.
It enables lenders to earn interest through depositing digital assets within specially created liquidity pools, which borrowers can then use through posting crypto as collateral and taking flash loans through using the liquidity.
The launch of Aave Arc as a catalyst for growth
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On December 23, we covered Nansen’s deep dive into Avalanche.
On January 5, through Tweeter, we saw an announcement that Aave launched its permissionless DeFi platform known as Aave Arc.
Aave is currently the largest lending protocol within the crypto ecosystem and has opened its new Aave Arc offering to 30 investment firms through a partnership conducted alongside Fireblocks.
The Aave Arc will cater to financial institutions as well as corporates, which gives them the means of borrowing digital assets and getting high yields DeFi offers through a sandboxed regulatory environment.
Some of the whitelisted institutions include Anubi Digital, Bluefire Capital, Hidden Road, Ribbit Capital, and Covario QCP Capital, Canvas Digital, Celsius, CoinShares, GSR, and Wintermute.
Ever since Aave launched on Ethereum, it has seen a high level of growth and has gained over $26 billion in total value locked. Throughout 2021, it even expanded to Polygon and Avalanche.
All of this has contributed to the growth of the AAVE token, and its growth can go even higher.
Should you invest in Aave (AAVE)?
On January 6, Aave (AAVE) had a value of $223.5.
To get a better perspective as to exactly what kind of value point this is for the AAVE token, we will be going over the all-time high value of the token, alongside its recent performance in December.
The all-time high of the AAVE token occurred on May 18, when the token reached a value of $661.6. This gives us an indication that at its ATH point of value, the token was $438.1 higher in value or by 196%.
In terms of the performance in December, its lowest value point was on December 15, when the token decreased in value to $160.05.
However, its highest point of value was on December 28, when the token reached a value of $292.84. Here, we can see that the token grew by an additional $132.79 or by 83%.
However, from December 28 to January 6, the token decreased in value by $69.34 or by 23%.
This puts AAVE at a solid buying opportunity, as it has the potential to reach $250 by the end of January.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use: