AAVE Crypto Continues Upward Surge Following V3 Upgrade

Liquidity farming is one of the most popular ways for crypto investors to put their assets to use. Rather than letting coins and tokens sit in a wallet, investors can put their assets into DeFi protocols to build passive income. The practice is very enticing, and Aave (AAVE-USD) is one of the best platforms for it. With the network’s new V3 upgrade, the AAVE crypto is seeing a surge and rewarding investors even more.

The logo for the Aave cryptocurrency.
Source: Shizume / Shutterstock.com

Liquidity farming is a practice in which users lend funds in liquidity pools. Liquidity pools are a key component of decentralized crypto exchanges; by ensuring liquidity, exchanges do not need third-party market makers. Liquidity farming rewards investors for contributing to pools with interest.

When it comes to DeFi lending and passive income generation, there isn’t much that’s better than Aave. The network represents one of the largest liquidity farming protocols in the world; it trails only Maker (MKR-USD) as the largest DeFi platform in the world.

What sets Aave apart from other networks is that it’s the largest multi-chain DeFi protocol in the world by TVL. Indeed, most other lending competitors are exclusive to the Ethereum (ETH-USD) chain. This isn’t an issue for competitors — Ethereum is easily the largest layer-1 network in the world, and it has more than its fair share of active users. However, with the growth of Ethereum alternatives like Avalanche (AVAX-USD), Aave presents users with a reputable service to suit their needs.

AAVE Crypto Rises on Successful V3 Network Upgrade

While the AAVE crypto has been gaining traction as a star DeFi play throughout the last year, recent weeks have provided a new catalyst for the token. Aave developers have completed the protocol’s V3 transition, providing users with plenty of new features to get excited about.

The Aave V3 upgrade launched on March 17. The development brought plenty of welcomed new features to the platform. Most notably, developers added a bridge function to the protocol, allowing for greater interoperability between Aave and other networks. The upgrade also revamps contracts on the platform to lower transaction costs.

In the days following the upgrade, it appears Aave V3 is a hit among users. Transaction volume of the AAVE crypto continues to trend upward. In the last two days, AAVE volume has surpassed $1 billion per day. Meanwhile, TVL is flying high; by implementing cross-chain TVL, Aave is capturing over $20 billion in assets locked to its platform.

As Aave continues to build hype over its newest makeover, the AAVE crypto is gaining 10. Over the last week, the crypto has seen a 43% gain.

On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/03/aave-crypto-continues-upward-surge-following-v3-upgrade/.

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