Decentralized Finance [DeFi] lending platform, Aave has been on a roll this year and has been one of the biggest success stories. With a total value locked in of $1.076 billion, Aave is currently the fourth-largest DeFi protocol. Its native token, LEND has been trading relatively low over the past couple of weeks despite several positive fundamentals. However, LEND surged sharply by 21.54% in the last 24 hours catapulting its price to $0.491, at the time of writing.
Despite the fact that DeFi remained in a trend of growth as traders continue to move from the legacy traditional platforms to these new blockchain-based applications, LEND’s price saw a consistent decline. Aave recently secured $25 million from investors Blockchain Capital, Standard Crypto, and Blockchain.com Ventures. Even this news failed to deter the price action of the popular DeFi token.
The latest spike materialized just a day after the news of Coinbase Custody’s announcement of token listing came out. On the 17th of October, Coinbase Custody, which happens to be one of the world’s leading crypto custodians, announced its plans to support more assets and launch new features over the coming months. Aave’s [AAVE] was one of the 39 tokens that the platform was exploring. The official blog post notified,
“While not all assets, chains and features will be available in all regions, a full list of digital assets that Coinbase Custody is exploring is: Aave (AAVE), Amp (AMP), Ampleforth (AMPL), Ankr (ANKR), ArCoin (ArCoin), Audius (AUDS), Barnbridge (BOND), BitTorrent Token (BTT), Centrifuge (RAD), Conflux Network (CFX), Curve (CRV), DFI.Money (YFII), Elrond Gold (EGLD), JUST (JST), JUST Stablecoin (USDJ), Meta (MTA), MovieBloc (MBL), mStable (MUSD), Neo (NEO), …]
100 LEND = 1 AAVE
It is important to note that LEND is being migrated to AAVE at a rate of 100 LEND per 1 AAVE. After a vote by the Aave community, SwissBorg revealed that the AAVE token was going to replace LEND as the governance token of Aave Protocol. The swap began on the 12th of October. Hence, the protocol is set to get rid of the very LEND used to launch AAVE into existence and convert all LEND tokens to AAVE tokens at a rate of 100:1.