Aave, a cryptocurrency based on an open-source decentralized finance protocol, rallied 42% over 24 hours to $434.88 at press time on Monday.
What Happened: The DeFi cryptocurrency has surged 54.5% over seven days on a trailing basis, according to CoinMarketCap data.
Aave outperformed Bitcoin (BTC) and Ethereum (ETH) which traded 3.27% and 7.05% higher at $37,920.62 and $1,660.60, respectively.
On Wednesday, Grayscale Bitcoin Trust GBTC closed 3.42% higher at $38.06.
Aave is a decentralized non-custodial liquidity market protocol where users can play the roles of both depositors or borrowers.
The protocol allows for interaction on the Ethereum network. Developers can build third-party services or applications that interact with the protocol.
The Aave token allows for governance and deciding on the outcome of Aave improvement proposals.
The token can also be staked to provide security to the protocol or depositors. Stakers can earn rewards and fees from the protocol.
Why It Matters: At the end of January, Aave emerged as the largest DeFi project on Ethereum and had over $3 billion in cryptocurrency locked in its smart contracts, reported CoinDesk.
The total value locked in Aave exceeded $4.4 billion, as of press time.
“Shark Tank” fame investor Mark Cuban revealed this week that he owned Aave, SushiSwap (SUSHI), along with some other cryptocurrencies, on r/WallStreetBets — a Reddit forum that sent stocks of GameStop Corporation GME and AMC Entertainment Holding Inc AMC soaring.
Total Value Locked in DeFi projects has risen to to $32.48 billion, as per data from DeFi Pulse.
ETH-based DeFi currencies gained momentum on Wednesday and so did Ethereum rivals such as Polkadot (DOT) and Solana (SOL).
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