{"id":162157,"date":"2021-01-25T03:02:37","date_gmt":"2021-01-25T00:02:37","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/aave-hits-record-288-high-as-demand-for-flash-loans-and-staking-increases\/"},"modified":"2021-01-25T03:02:37","modified_gmt":"2021-01-25T00:02:37","slug":"aave-hits-record-288-high-as-demand-for-flash-loans-and-staking-increases","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/aave-hits-record-288-high-as-demand-for-flash-loans-and-staking-increases\/","title":{"rendered":"# Aave hits record $288 high as demand for flash loans and staking increases"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a295ddea1d2a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a295ddea1d2a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/aave-hits-record-288-high-as-demand-for-flash-loans-and-staking-increases\/#TVL_soars_to_a_new_high\" >TVL soars to a new high<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/aave-hits-record-288-high-as-demand-for-flash-loans-and-staking-increases\/#Staking_drives_demand_for_AAVE_token\" >Staking drives demand for AAVE token<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/aave-hits-record-288-high-as-demand-for-flash-loans-and-staking-increases\/#Flash_loans_attract_investors\" >Flash loans attract investors<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Aave hits record $288 high as demand for flash loans and staking increases <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Aave (AAVE) price has been on an absolute tear for weeks and today the DeFi-token rallied to a new all-time high at $288.90.\u00a0<\/p>\n<p>The decentralized finance protocol is one of the most popular in the market and the recent rally in the DeFi sector is one of the driving forces behind AAVE\u2019s rally. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/bd8bcf04-f264-444a-87dd-7e67cec78698.png\"><figcaption style=\"text-align: center;\"><em>AAVE\/USDT 4-hour chart. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/x\/P5NCs7b1\/\"><em>TradingView<\/em><\/a><\/figcaption><\/figure>\n<p>At the start of 2021, AAVE price was trading at $83 and the recent rally <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have bolstered the protocol\u2019s surging total value locked, increasing buy volume on spot and derivatives exchanges and the continued development of Aave\u2019s lending platform and flash loan issuance. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"TVL_soars_to_a_new_high\"><\/span>TVL soars to a new high<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Data from DeFi Pulse shows that Aave\u2019s TVL rose from $2.03 billion on Jan. 1 and as (BTC) and Ether (ETH) price went parabolic Aave\u2019s TVL also surged.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/dab5d4b1-9b46-4a27-b663-c1325b280568.png\"><figcaption style=\"text-align: center;\"><em>Total value locked on AAVE. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defipulse.com\/aave\"><em>DeFi Pulse<\/em><\/a><\/figcaption><\/figure>\n<p>Currently, Aave\u2019s TVL sits at a new all-time high of $3.75 billion, making the platform the second-largest DeFi platform by TVL behind Maker (MKR). <\/p>\n<p>The steady addition of new tokens to the lending and borrowing protocol increases the likelihood that its TVL will continue to rise and help AAVE retain its standing as one of the top DeFi projects in the cryptocurrency space. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Staking_drives_demand_for_AAVE_token\"><\/span>Staking drives demand for AAVE token <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>AAVE\u2019s trading volume also surged at the beginning of 2021, increasing from $200 million on Jan. 3 to a high of $928 million on Jan. 16. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/5bfbaa09-86f3-4ee1-9c45-f2985a4d7cef.png\"><figcaption style=\"text-align: center;\"><em>AAVE price vs. Reported trading volume. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thetie.io\/\"><em>TheTIE<\/em><\/a><\/figcaption><\/figure>\n<p>As AAVE price reached a new high, it\u2019s 24-hour trading volume notched a record $1.06 billion. This volume surge is partially driven by investors acquiring more tokens for staking, with 26.8% of the total supply of AAVE currently staked on the platform earning an APY of 6.1% <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Flash_loans_attract_investors\"><\/span>Flash loans attract investors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Another reason for AAVE\u2019s recent surge is the growth of its flash loans.<\/p>\n<p>Flash loans allow cryptocurrency holders to collatoralize their portfolio to fund other purchases or new crypto purchases. The loans also help investors utilize the value in their tokens without the need to sell see them and create a taxable event. <\/p>\n<p>Since launching flash loans less than 12 months ago, more than $1.7 billion have been issued and it\u2019s expected that this figure will increse as the crypto bull market progresses.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/3460b5ea-d354-4315-9123-06f9af9ec0a6.png\"><figcaption style=\"text-align: center;\"><em>Total flash loan issuance to date on AAVE. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/aavewatch.com\/flash-loans\"><em>Messari<\/em><\/a><\/figcaption><\/figure>\n<p>As can be seen in the chart above, the most dominant token requested for flash loans is the DAI stablecoin, followed by USDC and ETH. Data from Messari shows that Aave issued $25 million in loans in the first half of 2020, $500 million in Q3, and nearly $1 billion in Q4, including $450 million in December. <\/p>\n<p>The expansion of the flash loan concept will likely attract more users to Aave, especially since they can be used for arbitrage opportunities between DEXs, collateral swaps, self-liquidations and a variety of other applications within the DeFi sector. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/aave-hits-record-288-high-as-demand-for-flash-loans-and-staking-increases\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Aave hits record $288 high as demand for flash loans and staking increases &#8221; Aave (AAVE) price has been on an absolute tear for weeks and today the DeFi-token rallied to a new all-time high at $288.90.\u00a0 The decentralized finance protocol is one of the most popular in the market and the recent rally&#8230;<\/p>\n","protected":false},"author":1,"featured_media":162158,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvZDdhNmVmYmYtMGExNy00Mjg3LTllNTEtOTU1NDM2ZjNjODk1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,74862,74863,74868,74891,73785],"class_list":["post-162157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-bitcoin","tag-cryptocurrencies","tag-defi","tag-ethereum","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/162157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=162157"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/162157\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/162158"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=162157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=162157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=162157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}