What is Aave (AAVE) crypto and why is it rising?

Highlights:

• Aave is a decentralized finance (DeFi) protocol that enables users to lend or borrow crypto through its platform.
• AAVE is the governance token of the Aave platform.
• The token is available on various exchanges like Binance, Bitget, Bybit, etc.

The Aave (AAVE) crypto has been on the investors' radar lately, evident by its price surge. On Thursday alone, the token gained more than 17%, while its volume skyrocketed over 212%.

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What is Aave (AAVE) crypto?

Aave is a decentralized finance (DeFi) protocol that enables users to lend or borrow crypto through its platform. For instance, lenders can receive cryptos or earn interests from their deposits through specially built liquidity pools. Also, borrowers can use their digital assets as collateral to take a flash loan using liquidity.

Aave, meaning ghost in the Finnish language, was called ETHLend during its launch in November 2017. However, it changed its name in September 2018.

AAVE is the governance token of the Aave platform. It provides holders with a say on the future innovation of the protocol. Additionally, it offers discounted fees to holders on the platform.

The project was founded to solve the lack of lending application on Ethereum by Stani Kulechov.

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What is Aave AAVE Crypto And Why is it Rising?

Why is it rising?

There could be two reasons for the unexpected surge in its price this week. One was the US Fed's long-awaited interest rate hike on Wednesday, lifting the investors’ spirit. Commenting on the decision, Fed chair Jerome Powell said the US economy is strong enough to absorb the new rate. His comments bolstered gains in the crypto market.

The crypto market was up 2.73% to US$1.83 trillion at 9:49 am ET on Thursday.

Second, the launch of its third iteration or V3 on six blockchains on Wednesday may have grabbed investors’ attention. The V3 launch marks a significant step forward for Aave.

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Aave plans to launch it next on the Ethereum mainnet, although it has not specified a date.

Aave V3 has several new features, including portals that facilitate cross-chain transactions, a high-efficiency model to unlock high borrowing power, an isolation mode to allow listing new assets safely and securely, and features to reduce gas costs 20% to 25%.

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                                                    Source: *Data provided by CoinMarketCap.com

Bottom line:

The AAVE token was priced at US$145.87 at 9:54 am ET on March 17, up 17.46%, while its volume in the last 24 hours surged 212.98% to US$533.73 million. It has a market cap of US$1.99 billion, and its fully-diluted market cap is US$2.33 billion.

The token's maximum and total supply is 16 million, and its current circulating supply is 13.64 million. Its price surged 21.62% over the last 7 days.

The token is available on exchanges like Binance, Bitget, Bybit, etc.

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