Today I want to share one of my biggest convictions in crypto : Aave, the face of DeFi, and its token $AAVE.
What is DeFi ?
Decentralized Finance (DeFi) is to the blockchain what traditional services offered by banks are to the global financial system.
It allows permissionless access to financial services such as lending and borrowing on-chain.
All of this is made possible by smart contracts and code, enabling lower fees and 24/7 access, unlike the traditional banking system.
Ethereum created the first programmable blockchain environment, which allowed DeFi to emerge and flourish, paving the way for major projects like Uniswap and Aave !
What Is Aave ?
Aave is a lending and borrowing protocol built on Ethereum. It allows users to lend crypto and earn interest, while others can borrow crypto by providing collateral.
This is a common strategy in DeFi, especially for whales who want to extract more value from their capital.
What makes Aave special is that it is the clear leader in its sector, by far.
Source : DeFiLlama
With around $40 billion in TVL, Aave has more than all its competitors combined ! That dominance isn’t going away anytime soon. Its growth continues strong, and with Ethereum gaining momentum again, I believe DeFi will return to the spotlight.
The $AAVE Token
I have strong conviction in $AAVE as an investment, not just for this bull run, but long-term. Here’s why :
Token Supply : Most of $AAVE’s supply has already been emitted into circulation. This reduces selling pressure, unlike newer tokens such as $SUI or $ONDO.
Source : Coingecko
Buyback Program : Aave launched a $1 million/week buyback program, funded by protocol revenue. This is set to last for 6 months (and could be extended). That’s huge for a project of this scale, especially with around $48 million in annual revenue.
Network Growth : As shown by the rising TVL, the Aave ecosystem is healthy and growing, despite many new competitors. It’s not just TVL, there are also more token holders, signaling growing adoption.
The DeFi Narrative Isn’t Over : So far, this bull run hasn’t been very favorable for legacy DeFi tokens , starting with Ethereum. But recent ETH pump and the social media hype around it suggest a shift in sentiment. This could bring renewed attention to ERC-20 tokens like $AAVE.
Conclusion
Aave has some of the strongest fundamentals in crypto. The metrics speak for themselves: growing usage, strong revenue, and dominance in TVL.
Yet the token still feels undervalued compared to what the project is achieving.
If you believe in the future of DeFi, Aave should be one of your top picks :)
Sites To Watch $AAVE growth :
- https://tokenterminal.com/explorer/projects/aave/metrics/all
- https://defillama.com/protocol/aave?events=false&denomination=USD&revenue=true
- https://aave.tokenlogic.xyz/buybacks
As always, thank you for reading !
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Disclaimer: This is not financial advice, you need to do your own research !
