Posted 10 months ago | by Ben Armstrong
Aave’s LEND Token Breaks the $100 Million USD Milestone
LEND, Aave’s token has seen an increase in its value of around 3900% since 2019 and has recently passed the $100 million level for market cap. To celebrate, the Aave team uploaded a video showing LEND’s growth over the years.
The Decentralized Finance (DeFi) industry has seen the value of its tokens increase dramatically this year. The distribution of the Compound Governance Token (compound), introductions of DeFi tokens from different protocols, and a growing interest from government and private companies have ensured that the DeFi movement is stronger than ever.
There are upgrades planned for LEND, and to work as a government token over the protocol in a way similar to COMP in the compound network through a voting proxy but the details have yet to be announced.
LEND is Making an Impact
Covid-19 and civil unrest around the world are forcing organizations and users alike to rethink how they approach to handling their money, with digital services having an increase in its use. With consumer’s trust in an all-time low and social distancing/lockdowns still in place around the world, consumer’s digital behavior is never going to be the same.
Digital customer experience has seen a revamp this last year as banks and financial institutions required to offer alternatives to users who could not operate in a physical branch. From customer service to stock trading, banks were forced to rethink on how to apply principles of open banking to their traditional models.
This represents a shift from servicing to engagement as these services had to be more streamlined and user-friendly to be accessible to non-technical savvy users who needed to access and operate their money.
Moving Toward Decentralized Solutions
Now that the gap between consumers and digital finance closing, an opportunity arises for the DeFi movement as flaws of centralized banking have been made more visible for users who realized the need for an alternative.
Ease of access, over-complicated and expensive transactions, untrustworthy organizations praying on customers, and how “local” financial institutions are, are just some of the disadvantages that the current system presents.
Cryptocurrency and DeFi Dapps can compensate for many of these shortcomings, offering users around the world a truly global system, transparent, secure, and truly free of any kind of centralized control
Aave is Learning from Compound’s success
The non-custodial open-source protocol enables the creation of money markets with users, providing its users with the option to earn interests on their deposits as well as to borrow assets.
The current trend for DeFi tokens would suggest that the strong uptrend for LEND will continue now that the $100m barrier has been broken. As other platforms running on the Ethereum network, there are a lot of expectations on how will the Ether 2.0 update affect its performance and features but for now, we can be optimistic about Avee’s future.
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