There continues to be more growth for the decentralized finance (DeFi) industry and with such growth comes innovative cryptocurrencies. Aave is looking to solidify itself as one of the premier cryptocurrency lending platforms.
Aave is touted as the world’s online bank by crypto investors and enthusiasts. This platform allows crypto investors to earn interest on their crypto holdings. Along with serving as a high-yield savings account, Aave also lets members take out a loan without a credit check. Rather, they will use a member’s cryptocurrency as collateral in the case that a loan has defaulted.
What is the (AAVE) Token?
The AAVE token is an Ethereum backed token that facilitates the Aave platform. Aave currently trades at around $293 and is currently the 45th most traded coin. The current market cap is just shy of $4 billion. The main purpose of the AAVE token is to facilitate governance within the Aave platform.
What are the advantages of Aave?
One of the main advantages of Aave is that It pays interest for cryptocurrencies held by a user. The current rate for their interest savings account is 0.042616352737987% APY. An additional advantage of Aave is that users can use one cryptocurrency for collateral to obtain a different cryptocurrency via a loan. This allows users to expand their crypto holdings to coins that they currently do not have.
Given that the platform operates on the Ethereum network, users can rest assured that their holdings are safe and secure within the Ethereum infrastructure.
How do I buy Aave (AAVE) Token on Binance?
Login to your Binance account and click “Trade” and then click “Convert”.
In the “From” section, choose which cryptocurrency you’d like to convert and specify how much. Then in the “To” section, select “AAVE” from the dropdown menu. Then click “Preview Conversion”.
On the next page, review the details of conversion before hitting “Convert”.
Future Outlook of AAVE
As the DeFi industry continues to expand, a service like Aave will certainly have a space to dominate. Notable crypto platforms are not blind to this as Aave has Blockchain.com, DeFiance Capital, and Blockchain Capital as some of its stakeholders.
Now, there is over $10 billion of total value secured in Aave. This is the reason why it is by far the largest DeFi program in the market. This year Aave released Aave Pro which caters to institutions which should lead to a further increase in value.
Price hit a high of $668 this year and is currently trading near $293. Some forecasters have the price reaching $800 by 2023 fueled by the DeFi market growth and global crypto adoption.