Blue Chip Token Aave Surges 17% Amid Latest Upgrade: Analysis

The Blue Chip token Aave surges 17% amid the latest upgrade as we are going to see further in our latest altcoin news today.

The latest upgrade to lending and borrowing protocol Aave was greeted with a surge in buying activity. The project’s native ERC-20 token AAVe which is used for staking and governance and the blue chip token Aave surged by 17% over the past day according to the data from CoinMarketCap.

1/ Aave V3 is here! 👻  
The most powerful version of the Aave Protocol to date, V3 brings groundbreaking new features than span from increased capital efficiency to enhanced decentralization. Read what's new in V3 in the thread below👇or visit https://t.co/H3jTyKRqNs to dive in! pic.twitter.com/LXzn7660nA

— Aave (@AaveAave) March 16, 2022

At press time, Aave is trading at $147 which is a price nearly 80% lower than the token’s ATH of $632 from back in May 2021. Aave’s latest price action has been driven by the launch of the V3 upgrade. The updates often include integrations with Layer-2 scaling solutions and optimizations for gas costs with tons of wallet integrations and more. The ETHLand in 2017, Aave is the DeFi sector’s largest protocol by total value. According to DeFi Llama, Aave has a whopping $19.37 billion and the entire sector holding about $250 million gives Aave about a 7% slice of the market.

The runner-ups include DEX Curve Finance and Terra-based Anchor Protocol. Somewhere on the DEFI market, other blue-chip tokens like Maker and Synthetix also enjoyed a strong double-digit jump with both tokens being up by 10% in the past day. Maker is DEFI’s central bank of sorts and turned ETH deposits into the DAI stablecoin. The loans are over collateralized which means you could deposit more ETH than you will receive in dAI and it is one of the oldest decentralized stablecoins on the market.

Synthetix came to the fore and promised some better crypto versions of traditional assets such as oil, stocks, bonds, and crypto for use in its ecosystem. Compound is also up by 7% while SushiSwap is a forked iteration of the DEX Uniswap which increased 8% over the past day.

As recently reported, The central bank of Brazil revealed that it picked a total of nine projects to go forward in its challenge to develop a central bank digital currency and one of the projects is Aave. The central bank of Brazil revealed the LIFT challenge where the current theme is “Real Digital.” the main goal of the challenge is to evaluate all use cases of CBDCs issued by a central bank and how technologically feasible they are. There are a few other characteristics that participants have to keep in mind when they submit a proposal and some of them include scalability aimed at retail application, the privacy of the information, compliance with existing regulations, programmability, and interoperability.