Cryptocurrency is creating waves globally. The investment model has attracted many across the globe. The first crypto to enter the global market was Bitcoin. The launch price of Bitcoin was only $1 per coin. But today, a Crypto Genius is a platform that down the line the price of the same coin is at $35k. This is the growth journey of crypto.Â
Other than Bitcoin, today there are more than 4k+ cryptos in the global market. The market volume of crypto has increased by more than $1 trillion. The investments continue to grow as the interest.
What is Aave crypto?
In 2017, a UK-based developer created a native lending application within Ethereum. This lending app was capable of allowing users to borrow and lend their Ether tokens. Over time, this lending app expanded to other cryptos as well. Considering the growing need, the developer renamed this app Aave in 2018.
Working model of Aave currency
An investor can earn by locking their existing cryptos to liquidating pools. It allows generating interest through such pooling activity. Borrowers in turn use these pools to buy the available cryptos. There is collateral submitted by every borrower as part of this process. In most cases, collateral is higher. It also works to safeguard cryptos from price volatility.
Aave also allows users to borrow cryptos without any collateral. There is an option to avail of the flash loan. Using this process, borrowers need to return the crypto within a specified period. The process of flash loans also allows gaining profits by selling them to other exchanges.
Aave crypto works to ensure that the process of borrowing and lending works at ease. There are no hiccups and both parties benefit. As against peer-to-peer lending, Aave allows users to undertake pool-based lending. Lenders liquidate their kryptos by pooling them in the open platform. The pool contract also allows borrowing funds through the use of any collateral. The loan amount is not matched individually. Instead, the platform matches its borrowing amount and collateral.
Price history of Aave cryptocurrency
The initial coin offering of Aave was in November 2017. The currency was able to generate more than $15 million in sales volume. The launch price of this coin was $0.01 per coin. There were more than one billion coins out in the market for sale. These coins were ERC 20 and help to use this token during any downfall.
Almost two years after this launch, Aave announced a rebranding. During this period, there were 1.3 billion LEND coins added to this portfolio. These newer tokens allow exchanging 100 LEND for an Aave. This swapping worked in favor of the Aave coin. In 2020, Aave became the fourth largest decentralized platform. In October 2020, the price of this coin spiked to $50 per coin. Following this increase, the price of Aave hit an all-time high of $80+. A newer version of this protocol got its release during the period. The protocol is simple, flexible, and works efficiently.
Price hike of Aave in 2021
Following the price hike in 2020, Aave spiked to another jump in 2021. In January 2021, the price of Aave was recorded at $100. In February the price of the same coin increased to the $500+ mark. Why this increase? The sudden increase in the number of users is an important reason for this price hike. Additionally, there was also much flattering about this platform and its working model. A leading crypto exchange, Coindesk reported Aave as the second-largest decentralized platform. It works on the Ethereum platform and currently has more than $3 billion in investments.
Is it a good time to buy Aave?
The year 2021 was a promising year for Aave. The history continues in the current year also. Aave crypto has turned to an increase of $300 per coin. The question of whether this is a good time to invest continues. Aave has plans to expand and bring innovations to its platform. The market demand and the craze for this crypto are not subsiding. There are also newer regulations planned on its platform. It will allow for security in transactions. In case you wish to buy Aave crypto, then you can do so by logging into any of the crypto exchanges.
