Lending platform token, Aave, experienced a surge within 24 hours after Bitwise Investments announced that it would invest in the platform. The announcement shot the bids for Aave through the roof across spot exchanges, pushing the DeFi protocol token to $333.84, a 9.90% growth. The token rose to $372.71 on Thursday, an intraday high not seen since June 9.
Bitwise disclosed its intention to invest in Aave on Wednesday, explaining that the investment is in support of the ‘Bitwise Aave Fund.” The fund would be able to bring emerging decentralized finance (DeFi) and accredited investors together.
Aave is a platform that allows users to borrow assets with a secure interest rate option and also helps them score interest rates on deposits. The platform also gives ‘flash loans’ that users can borrow without collateral, but for a very short period.
The surge has helped Aave claim its place in the DeFi sector as its year-to-date profits have increased by 320%. Matt Hougan, the chief information officer of Bitwise, mentioned Aave as one of the largest DeFi protocols according to the company’s index. He further explained that:
“Bitwise’s vision is to make the opportunities emerging in crypto more accessible, and we’re thrilled to take another step with the world’s first Uniswap and Aave investment funds.”
Image Credits: Pixabay
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