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AAVE price soars to $123 all-time high as TVL rises and fundamentals improve

Aave’s rising total value locked, improving fundamentals and renewed interest in DeFi tokens triggered a double-digit rally in AAVE price.

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As the crypto bull market continues to gain traction, the price of Aave’s native token, (AAVE), is pushing toward new all-time highs.

The growth of the decentralized lending platform appears to be bolstered by improving fundamentals, steady growth in the total value locked on the platform, and the creation of a DeFi based crypto-collectibles token and community called Aavegotchi,

Unarguably, Aave was one of the DeFi success stories of 2020, as its price rose from $2 in January 2020 to today’s all-time high at $123.92.

AAVE/USDT 4-hour chart. Source: TradingView.com

The most recent breakout saw the price rally by 52.6% in the past 3 days and a number of analysts attribute part the upmove to the “Coinbase ffect,” after the top U.S. crypto exchange announced plans to list AAVE on Dec.15.

AAVE tracks Bitcoin’s progress

According to DeFi Pulse, Aave is now the second-ranked DeFi platform according to the total value locked metric with a total of $2.41 billion currently entrusted to the platform.

Total value locked (USD) in Aave. Source: defipulse.com

The platform also appears to show a correlation between total value locked on the platform and the price movement of BTC. As shown in the price chart below, as the BTC price appreciates, so does the amount of value locked on the Aave platform.

BTC/USD price (3 month). Source: Cointelegraph.com

Choosing to expand beyond Ethereum to the wider crypto economy, and the ability to trade BTC on top of the Ethereum protocol via layer-2 solutions, looks to have been a key part in the growing success of Aave and its expanding decentralized finance offerings.

Capitalizing on DeFi, Layer 2 tech and NFTs is catalyzing growth

Crypto is an ever-evolving sector and there is a tendency for the most active, ingenuitive tokens to hold their value and growth potential when compared to meme tokens and projects without roadmaps.

As the DeFi and NFT sector grew in popularity throughout 2020, the team launched Aavegotchi (GHST), a DeFi-enabled crypto collectibles project that combines DeFi characteristics with the growing trend of NFT’s and crypto collectibles.

GHST was launched as a DAO governed token sale, a DAICO, in which all raised funds were managed by the community. The platform allows users to collect, combine, and compete with their Aavegotchi’s in an ever expanding gamified experience.

Users can also stake their GHST tokens on the Aavegotchi platform to generate Frens, which can then be used to buy raffle tickets for specialized items or to summon new Aavegotchi’s.

By keeping abreast of emergeing trends within the crypto sector, the team appears to have strengthened their ecosystem and this possibly allowed AAVE to weather the sharp DeFi sector sell-off that occurred in mid-Ocotober.

During the DeFi correction, many tokens lost up to 80% of their value and AAVE and GHST token were not spared from the carnage. This led the team to delay launching its NFT platform and the most recent 70% rally from Ether (ETH) has forced the Aavegotchi team to delay their Ethereum mainnet launch due to soaring gas fees.

This week the team announced that instaed of launching on Etheruem, Aavegotchi will shift to the Matic Network for the time being.

The team confirmed this choice with the community and stated that OpenSea, one of the largest NFT marketplaces, will also be launching soon on Matic. These revelations coincided with an increase in MATIC price and in the past 24-hours the token rallied by 28%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Source: https://cointelegraph.com/news/aave-price-soars-to-123-all-time-high-as-tvl-rises-and-fundamentals-improve

Blockchain

$250M Fund to Invest in Polkadot and Cardano Launched in India

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FD7 Ventures, the cryptocurrency-oriented fund that recently vowed to dispose of its BTC holdings for ADA and DOT, has set up a $250 million micro-fund focusing on investments in teams working on the ecosystems of Polkadot and Cardano.

FD7 Goes to India for DOT and ADA

Based in Dubai, UAE, FD7 is a crypto-oriented investment fund with over $1 billion in assets under management (AUM). The firm recently announced somewhat bold plans to dispose of $750 million of its BTC holdings and allocate the sizeable amount into ADA and DOT.

At the time, the company’s Managing Director blasted the primary cryptocurrency and highlighted the potential for Cardano and Polkadot to further rise in popularity and utilization.

FD7 Ventures doubled-down on its belief in the two projects, according to a more recent press release. It reads that the firm has opened an office in Bangalore, India, with the primary focus of offering financial assistance to Polkadot and Cardano.

To do so, FD7 has established a micro-fund targeting $250 million to invest in teams working on the two projects. The statement described this move as part of the overall “strategic road map to build its presence in Bangalore” and further reaffirm its support for Polkadot and Cardano.

“Positioning our new location where we have in Bangalore gives us a home-field advantage to tap into some of the world’s best future talent in blockchain and cryptocurrency development.” – commented Prakash Chand, Global Managing Director at the company.

The new venture plans to invest $1-5 million across 50 companies yearly, with about “thirty percent of those Polkadot and Cardano ecosystem-based companies receiving secondary investments of $5-20 million.”

NFTs Are the Future

The statement also touched upon the growing craze of non-fungible tokens (NFT) and Polkadot’s role in some particular cases. More specifically, it breached the recent partnership between the famous YouTuber Paul Logan and Bondly, which resulted in an impressive popularity boost.

“Just look at Bondly, which is built on Polkadot. It literally blew up overnight when YouTuber Paul Logan sold more than $5 million worth of NFTs in just 24 hours. This is not just a space to watch but one which is proving its investment-worthiness with almost daily records being set with increase use cases for non-fungible tokens that support cryptographic art, collectibles, gaming, and more.” – said Chand.

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Source: https://cryptopotato.com/250m-fund-to-invest-in-polkadot-and-cardano-launched-in-india/

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Blockchain

China restricts crypto mining in Inner Mongolia

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China has been at the forefront of developing its digital yuan or DECP [Digital Currency Electronic Payment] but has continued to maintain a distance from the cryptocurrency ecosystem. The growing crackdown on Bitcoin mining firms in China has been impacting the sentiment in the area and according to reports, it has now extended a ban on mining projects in Inner Mongolia.

The country will end all cryptocurrency projects associated with mining. This decision followed China’s effort to meet energy efficiency targets. The large amounts of energy consumed by crypto and other industries like steel, coke, and methanol production have resulted in the government’s stringent decision to ban mining activity in the region.

The autonomous region of Inner Mongolia has been a hub for cheap power due to which the mining industry was drawn to it.

The aim of the region has been to cut emission per unit of gross domestic product by 3% this year and gradually control the massive boom in the consumption of standard coal. Although small, the region accounted for 8% of global Bitcoin mining hash power.

China has a 65% hold of the total network hash power allotted to Bitcoin and the above map highlighted that among other regions Xinjiang was the highest contributor to the hash rate in a month.

The abundant supply of coal and the relative remoteness of the region made it more convenient and cheap for miners to set base here. However, no strict actions have been taken to curb this problem by the Chinese government. If the country continued its mission to become more energy-efficient, it won’t be long before miners have to find alternatives to cheap electricity available in various regions in China.


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Source: https://ambcrypto.com/china-restricts-crypto-mining-in-inner-mongolia

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Central bank digital currency a mixed blessing, says RBI

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India’s central bank has recognized the potential benefits of central bank digital currencies but not without including a few pitfalls.

The Reserve Bank of India offered its assessment of CBDCs as part of its report on currency and finance issued on Feb. 28.

As part of the report, the RBI noted that several countries are exploring the creation of their own sovereign national digital currency.

According to the central bank’s report, CBDCs can help to promote financial inclusion and transactional transparency. The RBI also stated that national digital currencies could be useful as an instrument of monetary transmission by helping to engineer public consumption towards specific categories of products and services.

Detailing the benefits of CBDCs, the RBI also remarked that digital counterparts to sovereign fiat currency could be used by central banks to pump “helicopter money.”

In its analysis, the RBI also expressed concerns about the potential negative impacts of CBDCs on the legacy financial system, noting:

“CBDC is, however, not an unmixed blessing — it poses a risk of disintermediation of the banking system, more so if the commercial banking system is perceived to be fragile.”

For countries with significant credit markets, the RBI argued that CBDCs could threaten the primacy of commercial banks as the primary channel for the transmission of monetary policy.

As previously reported by Cointelegraph, India is looking to emulate China in creating its own CBDC. According to RBI governor Shaktikanta Das, the central bank is “very much in the game” of developing a digital rupee.

However, the RBI report did not include any details about the central bank’s digital rupee project. In another portion of the document, the central bank did concede that internationalization of the rupee was inevitable but added that such a move would complicate monetary policy formulation and implementation.

With several countries looking to create their own sovereign digital currencies, CBDC interoperability is becoming a concern among stakeholders. Meanwhile, reports indicate that China’s digital yuan will have a more domestic focus.

Source: https://cointelegraph.com/news/central-bank-digital-currency-a-mixed-blessing-says-rbi

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