Aave v3 launch kickstarts a 50% increase from the previous lowering trend

As seen on sites like Redot Crypto Exchange, AAVE’s price stopped a falling trend that could be traced as far back as last year after the release of its latest version, AAVE v3, to the public. In this new update, there are 6 distinct blockchain networks being supported by AAVE crypto in the decentralized ecosystem.

AAVE is a non-custodial platform that is part of the decentralized blockchain in which crypto enthusiasts are able to borrow or lend digital assets. As a depositor, you’re able to gain a passive income by loaning AAVE crypto in the form of AAVE coins or other coins to another or several other crypto enthusiasts. For those borrowing, it is possible to choose between repeated borrowings or borrowing only once. In either case, the borrowers of the AAVE coin or one of the other 30 crypto coins available to borrow in will pay the digital assets back with interests at a later date.

Despite the initial drop in AAVE price on https://redot.com and other exchange sites, the crypto platform has some things working in its favor such as being an open-source platform - no need for outside intervention - and its manner of having a well-managed pool of funds despite being decentralized. In transactions of lending and borrowing, the AAVE crypto system sends the currency to the receivers from the wallets of the senders. With the aid of smart contracts, verifiers can scrutinize transfers made on the AAVE system prior to the distribution of the digital assets to their respective receivers. This makes the entire ecosystem secure and counters the threat posed by malefactors.

At the beginning of 2021, AAVE’s price prediction became more favorable thanks to a price hike, and this caused a good number of crypto adopters to get in on the crypto. Another thing that kept them on the platform was its being open-source; this allowed crypto investors to borrow or lend over and over again. There are some crypto investors that use AAVE flash loans as an alternative way of getting loans on the platform without collateral. It must be said, however, that using this method requires a person to be a developer and pay back in a single block payment. Many other developers are more focused on the tweaking and development of their DApps on an open-source platform like the AAVE protocol.

Now, with decentralized finance going through some sort of metamorphosis, many platforms that shot up in a steep growth to the forefront of the crypto space have quickly fallen and disappeared from the public eye. This also means that a lot of the slower, less popular ones have kept on growing surely but steadily in worth and exposure. The non-custodial liquidity and open-source nature of AAVE have let it persist through the harder times to now see what looks like brighter days ahead.

Based on the market data, AAVE’s value has risen immensely by 110%. This pushed it from a low of $114 in the middle of March to a high of $242 at the end of the month. Its trading volume skyrocketed to over $1.25 billion at a rising rate of over 440%, which bodes well for AAVE’s price prediction in the future.

Some of the reasons for this spike in the value of the platform is the AAVE v3 release date. AAVE v3 was launched on March 16 and after that, there was an upturn in the price of the crypto due to the increase in the potential and function of the protocol within Blockchain. Crypto investors had been waiting for the launch of AAVE v3 for a while now, and based on the developers, the new things added will aid in fostering higher capital efficiency, boosting the secureness of the platform, and enhancing cross-chain functionality. All in all, the third version is going to further decentralization throughout the DeFi network.

One of the new features is what is known as portals; they give AAVE governance-sanctioned permit listed bridge protocols to execute cross-chain transfers. Another is eMode, a mode with an incredibly high level of performance that lets crypto enthusiasts get the optimum amount from their collateral through a larger borrowing power being provided. This is done in a mode of isolation and the same group of tokens as well as reducing the accessible collateral for assets that are newly listed. In doing so, the risks are curtailed and the exposure is reduced. AAVE v3 supports Fantom, Avalanche, Harmony, Polygon, Optimism, and Arbitrum but there is an additional one meant to be added to this group soon.

Another factor causing the high rise of AAVE is the widening of the protocol’s ecosystem; the platform now opens on new networks and makes good amalgamations with other DeFi platforms in an integrated manner. Despite being on so many networks, the protocol wants to keep going with AAVE v3 and reach out to further networks so as to integrate with them as well - one of which is Metis. Wallet developers have also taken a liking to AAVE as have web3 aggregators. Some of them are Zerion, Instadapp, and 1inch to name a few.

The final sign of the value of AAVE not just now, but in the future is the strong community behind the project. They have, for the most part, stuck by AAVE when things weren’t looking so well last year during a bear trend and now, are reaping the rewards. New members are joining these days regardless of the general problems DeFi has experienced these days. Based on data, wallet users that have been involved with AAVE surpassed 90,000. If this continues to increase, it bodes well for AAVE’s price prediction for the near future. The TVL of the platform is already going higher and is now at almost $14 billion. Recently, there has been a new wave of backing behind liquid assets and this aided the increase in TVL for the project.