What happened

Aaveit’s ( AAVE 21.45% ) the token is once again soaring in today’s trading. The cryptocurrency was up about 22.9% over the previous 24-hour period as of 3:15 p.m. ET on Friday.

The digital token exploded following the rollout of new features on the Aave blockchain network. Its cryptocurrency is now up 58.7% in the last trading week.

Image source: Getty Images.

So what

Aave recently rolled out the version 3 (v3) upgrade for its network, introducing improvements for its decentralized finance (DeFi) services. Aave v3 has implemented “portal” features that allow assets to be moved between any Aave compatible blockchain. The update also introduced Isolated Market Services and High Efficiency Mode to improve functionality and overall user experience. The improvements seem to be attracting the attention of some crypto whales and crypto investors in general.

Now what

Aave now has a market capitalization of around $3.5 billion and ranks 47th among cryptocurrencies in terms of valuation.

With the new enhancements and feature rollouts, Aave’s fundamental valuation case appears to be improving and driving increased investor interest in the token. If its network continues to improve and build the user base of its DeFi services, it could help push its cryptocurrency significantly above current price levels. However, investors should keep in mind that the token will likely continue to be affected by price changes for the broader crypto market, and it could see volatile price swings unrelated to the underlying services. of the network.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.