Are you familiar with Decentralized Finance (DeFi)? If so, are you a Liquidity Provider? If your answer is yes, then you should know that Aave, the ghost protocol that allows you to borrow and lend cryptocurrencies, supply liquidity, and stake liquidity in the form of cryptocurrencies rolled out its V3 on 16 March.
According to the protocol, the V3 of the Aave Platform introduced significant changes to the platform. These changes included enabling cross-chain transactions, provision of higher borrowing power, the listing of new assets while protecting the protocol, and gas optimization among several other upgrades to the system.
A look at the performance of the protocol’s native token, AAVE, showed some traction in early April following the launch. However, this was then followed by a reversal that plunged the price of the AAVE token further downwards. What else did we notice?
On 16 March when the V3 launch was announced, the price stood at $122 per AAVE token. 75 days later, this stood at $101. Within that period, the token declined by 17%. During the period under review, the AAVE token marked a high of $259 on 1 April. However, the cryptocurrency market price correction that plagued the month of April forced the price downwards. Between then and the time of writing, the token shed over 50% of its price.
Source: CoinMarketCap
The market capitalization of the AAVE token also saw some decline within the period under review. Standing at $1.66 billion as of 16 March when the Aave V3 was launched, the token has since shed 15% of its market capitalization. At the time of writing, the market cap of the token stood at $1.41 billion.
Further to this, the AAVE token was no stranger to the price correction that most coins suffered in
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