The cryptocurrency bull market is growing. As a result, the value of the Aave native token is reaching an all-time high level. The proliferation of the platform has been bolstered by the improvement of technology and the growth in value on the platform. The creation of the Aavegotchi community, which is a decentralized finance, cryptocurrency token with a collectible status, has also fueled its growth.
Aave was one of 2020's success stories for decentralized finance. Its value went from $2 in January 2020 to $123.92 on January 7, 2021. In its most recent rally, the price went up by an astounding 52.6%. Several analysts think that the soaring price is a result of the Coin Base effect. Coin Base listed the currency on December 15.
Aave is the second-highest decentralized finance token. It has $2.41 billion on the platform. The platform has a relationship between its locked value and the price fluctuations of Bitcoin. For the platform's managers, choosing to accept it was a big risk.
Cryptocurrencies are capitalizing on decentralized finance and its two-layer technology. The creative tokens seem to hold their value and have a lot of growth potential. The decentralized finance platform popularity fueled more cryptocurrency collectibles in 2020, and experts expect that trend to continue in 2021.
A user of Aave can swap tokens and generate in-platform currency that allows them to get raffle tickets. Those raffle tickets make them eligible for prizes or new characters on the platform. The Aave team has kept up with emerging trends in cryptocurrencies. When the decentralized finance market corrected, some of the tokens lost 80% of their value. This caused Aave's team to delay its launch. Soaring fees also played a role in the delays.
Aave also said that it will use the Matic network instead of Ethereum. After making that announcement, the Matic price had a 28% increase in its value. This will be an interesting token and platform to watch, especially with the upcoming change in presidential administration and the potential for more stringent regulations on cryptocurrencies in the United States. Investors expect an ongoing bull market.