Aave (LEND) surged higher on Monday as the rest of the cryptocurrency market inched higher. As of this article’s writing, LEND is trading 30% higher than it was just 24 hours ago, setting a new all-time high around $0.75.
With this, the asset has entered the top-25 cryptocurrencies by market capitalization. While it was once almost this high before, having surged during the 2017 crypto mania, this time the rally is predicated on fundamentals.
Related Reading: Crypto Tidbits: MicroStrategy’s $250m Bitcoin Purchase, Ethereum DeFi Boom, BitMEX KYC
Aave Enters Crypto Top 25
LEND entered the top 25 today after the U.K. entity that develops the project, Aave Limited, secured a strong regulatory approval from the U.K. government.
Aave was granted an electronic Money Institution (EMI) license, which purportedly allows the company to offer similar services to Coinbase and Revolut, both of which have the same license from the U.K.’s regulator.
Related Reading: These 3 Trends Suggest Bitcoin Is Poised to Bounce After $1,000 Drop
DeFi Has Room to Grow: Investor
Kelvin Koh, a partner at The Spartan Group, says that Aave is only the first of many crypto assets related to DeFi that will enter the top 25. He explained after the cryptocurrency accomplished that feat:
“A few weeks ago I suggested one of the DeFi tokens will get into the Top 25 on CMC before yearend. $LEND is the first to do this. I expect to see at least half a dozen more DeFi tokens achieve this feat before this cycle is over.”
A few weeks ago I suggested one of the DeFi tokens will get into the Top 25 on CMC before yearend.$LEND is the first to do this. I expect to see at least half a dozen more DeFi tokens achieve this feat before this cycle is over.
— SpartanBlack (@SpartanBlack_1) August 25, 2020
Others closely linked to DeFi have touted this opinion.
They say that many of the existing coins in the top 25 have little value. They often cite Bitcoin forks that don’t have much economic activity, or ghost smart contract blockchains that don’t facilitate much value, assets, or smart contracts/decentralized applications.
One commentator went as far as to say that $50 billion worth of value locked in these “ghost chains” could rush into DeFi over this market cycle.