In the past 24 hours, Aave’s LEND token rose to an all-time high after climbing 30% from $ 0.59 to $ 0.77. The strong uptrend is due to Bitcoin (BTC), and most altcoins are in the red as they lost momentum with the recovery of the US dollar.
The recent rally appears to have been driven by news that the UK’s Financial Conduct Authority (FCA) has licensed the Decentralized Financial Lending and Credit Protocol to the Electronic Funds Corporation (EMI). This enables Aave’s parent company, Aave Limited, to “issue electronic money (electronic money) and provide payment services”.
Currently, Aave users can borrow or borrow digital assets without the involvement of third parties. LEND is a sign of governance that allows its owners to vote on the future of the statute and specific changes related to the ecosystem.
While LEND only offers voting rights at this point, more features can be added if users vote for it.
Aave continues to make progress
According to Stani Kulechov, CEO of Aave, the FCA approval is in line with the company’s future plans for the protocol and will help bring new partners into the ecosystem.
However, there has been other related news about Aave in the past few months, which explains why the LEND has increased nearly 5,000% since early 2020.
The company recently released its Aavenomics proposal which – if approved by the token holders – would bring a lot of changes, such as adding bonuses for LEND holders.
Additionally, data from Defi Pulse shows the Aave protocol recently hit a total banned value of $ 1.44 billion, outperforming Maker with a banned fortune of $ 1.42 billion.
In special comments, Jordan Lazaro Gustav, COO at Aave, told Cointelegraph that Aave will soon be getting new features. Gustav said:
“Aave will also enable credit delegation as Party A can delegate their line of credit to Party B, who can take out loans. All of this will be possible under a legal agreement through OpenLaw. For example, a loan officer may want to be one party more configurable.” The borrower can be a company, a non-governmental organization, a government, an institution, etc. ”
Is DeFi late for correction?
While the LEND has posted a few weeks on the price charts, the majority of cryptocurrencies are correcting as Bitcoin price falls below the key support level of $ 11,400.
Some analysts believe that the current “legacy season” is coming to an end. Santiment, a digital asset data company, recently suggested that Bitcoin would soon regain its dominance of the entire crypto market.
According to analysts at Santiment, profits from the astronomical spikes resulting from the many tokens associated with DeFi will quickly return to stable coins and bitcoin.