Aave token hits all-time high.

The native token of the Aave lending project has risen more than threefold since the start of the year to a new all-time high of $288.7 (on Kraken). This was driven by strong user demand for flash loans and a rally in the DeFi sector overall.

AAVE ended 2020 at $88.65. According to CoinGecko, in the last seven days the token rose 43.7%. This places AAVE first in momentum among the top-10 DeFi assets. In daily trading volume the token trails only Chainlink (LINK).

Data: TradingView.

In the DeFi Pulse rankings the project held the second place after Maker, pulling away from the third-placed Compound. The total value locked (TVL) since the start of 2021 rose from $1.99 billion to $3.89 billion by the time of writing. Growth factors included the rise in Ethereum price and addition of new tokens to the protocol.

Data: DeFi Pulse.

The daily turnover of operations in the Aave protocol rose from $200 million on January 3 to $928 million on January 16. 26.8% of the AAVE supply was moved to staking with an annual percentage yield (APY) of 6.1%. The volume of instant loans issued over the last year rose to $1.8 billion, supported by DAI, USDC and ETH.

Volume of instant loans issued. Data: Aave.

The rising interest in flash loans may reflect a growing number of users who employ them, among other things, for arbitrage between decentralized exchanges.

In December, developers of the RSK platform announced the launch of a tool enabling interaction between Bitcoin and AAVE.

Earlier, the launch of the second version of the lending protocol Aave occurred.

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