The popular DeFi lending platform known as Aave has experienced its token named AAVE rise by 12%. But in the past 24 hours its value was increased by 76% to reach $137. 457.

Such a large movement in price has seen Aave among the biggest winners in the crypto market today and growing optimism in the platform and Decentralized finance (DeFi) space.

The recent rally has propelled Aave to $2,051,938,952 market capitalization and is currently among the biggest DeFi platforms in terms of the total value locked (TVL).

Aave is a decentralized application that enables its users to lend and borrow an assortment of tokens while generating revenue by providing capital to the DeFi space. Some of the aspects of the protocol like flash loans and credit delegation have been a boost to its adoption by many cryptos enthusiasts and institutional investors.

Aave ‘s (AAVE) price appreciation can be attributed to the following factors, which are imperative to the protocol. In the recent past, the platform has added new assets to the platform and has evolved its governance structure meaning token holders have a say on how the protocol is managed.

These improvements have possibly shifted the demand for AAVE tokens up since people want to engage in the platform’s governance and profitability of the expanding system.

The DeFi sector has also appeared to be gradually emerging from the consolidation phase that it had been lingering in for a long while. Today’s Bangkok trading showed Aave to be among the top performing DeFi tokens, indicating that there has been a revival of interest in decentralized financial services now that more people are turning to decentralized systems to get financial services.

The company’s proven ability to achieve attractive interest rates and introduce new financial products has ensured that both retail and institutional investors provide a good opportunity to get the highest profit in the field of cryptocurrency.

But, it also worth to recognize, that now AAVE is significantly higher than it was before the bull run started, however is still a long way from its all-time high of $666. 029 that it raising $1 to $3 million in 2000, at the height of the last bull market. This gap stays a reminder that the cryptocurrency investment is a highly risky investment where an individual can make good profits or also lose major profits for a short period of time.

Given the fact that the market of cryptocurrencies is still emerging, the importance of Aave in the context of DeFi will probably not decline in the future. The innovation of the platform and especially social support underline the favorable conditions for further development.

Decentralized finance is still rather new and it remains to be seen as regulators the world over provide more certainty as to the usage of Aave and similar platforms in the future months.

From the trend shown above, investors and analysts will be eager to see whether Aave will be able to maintain the above upward performance in the coming days. Another issue that will define the success of such a platform, in addition to the number of new users and the continued dominance of the DeFi protocol, is the number of users the platform can reach.

Nevertheless, potential investors are advised to consult this and any other related investment opportunity on their own, and to understand the underlying risks that accrue to the investing in cryptocurrency.