Aave AAVE price has been on an absolute tear for weeks and today the DeFitoken rallied to a new alltime high at 288.90. 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 AAVEs rally.
Data from DeFi Pulse shows that Aaves TVL rose from 2.03 billion on Jan. 1 and as BTC and Ether ETH price went parabolic Aaves TVL also surged. Currently, Aaves TVL sits at a new alltime high of 3.75 billion, making the platform the secondlargest DeFi platform by TVL behind Maker MKR. 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.
Another reason for AAVEs recent surge is the growth of its flash loans. 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. Since launching flash loans less than 12 months ago, more than 1.7 billion have been issued and its expected that this figure will increse as the crypto bull market progresses.