Aave (AAVE) Accumulates 10% Weekly Gain as It Prepares to Launch “GHO Stablecoin”



11 January 2023 12:56, UTC


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Aave, one of the leading DeFi lending protocols, is emerging as one of the top players in the crypto ecosytem as its native token, AAVE, pumps more than 10% over the past week. The DeFi protocol is also gearing up for the launch of its upcoming stablecoin “GHO” in order to solve real world payment problems.

On-chain analytics platform, Santiment, suggested that Aave protocol has witnessed a sudden surge in whale holdings that has inflated nearly 12% in the last four weeks. In addition, AAVE price has jumped more than 10% in just over a week, as per CoinMarketCap. At the time of writing, the native token of the Aave protocol is up 9.57% to trade at $61.51.

The increase in both the price of its cryptocurrency and whale holdings can be credited to a number of factors the decentralized lending protocol has announced recently. With over $3.8 billion total value locked (TVL), Aave (AAVE) is now one of the top 5 decentralized finance (DeFi) protocols.

Reasons for Growth

The community has given the greenlight 🟢 for GHO 👻 The next step is voting on the genesis parameters of GHO, look out for a proposal next week on the governance forum https://t.co/ba4oK50Wb8

— Aave (@AaveAave) July 31, 2022

The Aave team is preparing for the launch of its new stablecoin, GHO, in order to help improve various key features of the protocol’s lending platforms. The GHO Stablecoin is a decentralized, multi-collateralized stablecoin pegged to the U.S. dollar.

It will be backed by an assortment of user-selected cryptocurrencies that will be owned and governed by the Aave community. GHO has undergone a security audit by Open Zeppelin and been slated to release on the Aave V3 Market on Ethereum.

Aave co-founder, Stani Kulechov, had earlier highlighted the GHO stablecoin will solve real world payment problems. He also believes it will help attract stablecoin users because DeFi makes it more affordable to process transactions. Kulechov further explained the AAVE protocol is deployed on layer 2 solutions, such as Optimism and Arbitrum, including Ethereum, Polygon, and Avalance. The co-founder added,

“What I’m envisioning is that we have, first time ever, actually an opportunity to get stablecoins to be used as the Internet money and solving real world payment problems by still using the blockchain.”

Furthemore, AAVE V3 was launched recently to enable cross chain transactions, high efficiency mode for large transactions, gas optimisation and isolation mode for new assets. In the burgeoning DeFi space, Aave stands out by allowing over 20 lendable crypto assets, giving users more options and flexibility. In addition, users can switch between fixed and variable interest rates when they borrow on the platform.

Use Cases of Aave is Rising

1/5 @jpmorgan has executed its first live trade (with real balance sheet funds!) in DeFi using a modified version of the Aave protocol on Polygon mainnet, as part of The Monetary Authority of Singapore’s (MAS) Project Guardian. https://t.co/jVaKzZpPms

— Aave (@AaveAave) November 2, 2022

Recently, banking giant JP Morgan Chase completed its first DeFi transaction with the help of the Aave platform. In November, a crypto analyst, Jacob Crypto Bury’s Youtube channel claimed if Aave breaks the $80 mark, it will surge to $88 before a shallow retracement and move higher to the $92 mark. The $92 mark, however, is not guaranteed.

He emphasized the Aave ecosystem has continued to draw investors who use the platform to explore opportunities its ecosystem presents, including Defi, DAO, and NFTs. Severel experts also believe that as the crypto winter persists, services such as AAVE will become indispensable for surviving the current market conditions.

Sourced from cryptonews.net.

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