Aave has seen a massive jump in the crypto market to claim a total rise of 50% in the last few days. This recent rise is coming off the back of a recent market rise witnessed in the decentralized finance sector. Investors in the sector are now moving in to invest in tokens and coins in the sector more than ever in the wake of several bullish runs witnesses by major coins.
According to analysts and experts, the decentralized finance has seen a lot of action in recent days, which has emanated mainly from institutional and retail investors. Even though retail investors are doing what they can to keep the rally ongoing, the institutional investors are the weight behind the whole thing.
Institutional investors are flocking into the market
Institutional investors have been present in the market because most of them have discovered that they can profit off several markets in the sector. Most protocols in the DeFi sector are now being compared to financial investments due to the way most of them calculate their valuation rate. With DeFi making its way into the news every day, two major markets in the sector, lending, and oracles have been noted as the major drive.
Lending protocols like Compound and Saved has seen an influx of users in the past few weeks, which has led to the increase in profit that the protocols have generated. Their lending volumes have skyrocketed, possessing more volumes than other lending platforms in the decentralized finance sector.
In a recent analysis, Santiment, an analysis firm, released a report that said that the number of Aave whales has been on the increase in the last few months, making a case for the platform’s increase in value. “The DeFi sector has seen an increase as it can be seen with the increase of Aave, which is around 33% for a day,” the analysis firm said.
Analysts tips Aave to enter the top 10 digital assets by 2022
With investors entering the Aave market and pushing the valuation higher, the price of the native token is also skyrocketing. Aave currently stands at $5 billion in terms of its valuation, and going by records, no other protocol in the DeFi space boasts of the same numbers asides Chainlink. Chainlink has more than Aave because the protocol doubles as a digital asset and have seen activities in the last few days.
Despite Aave hovering around the high figure, investors are still not buoyed as most of them are still flocking into the lending platform. If Aave continues its dominance, it could break into the top 10 digital assets according to market cap as the whole total value locked in DeFi continues to eye the $40 billion region.
Several analysts and experts are tipping Aave to become a household name by 2022, beating all other protocols over the years to come. High-value investors are not left out in showering praises to the coin as major influencers in the crypto space admit to owning the coin.