Aave token retakes $110 price point as number of weekly borrowers hits all-time high

Quick Take

The price of Aave’s eponymously named token gained by 9% in the past 24 hours.
The lending platform hit a new record in weekly active borrowers, according to Dune Analytics data.

The price of Aave's governance token increased by 9% over the past day as the lending and borrowing platform hit a new record for weekly active borrowers.

The price of Aave is currently changing hands for $110.09, as of the time of writing. The native token of the lending platform has rebounded from trading at around $90 late last week, and is up over 65% since the beginning of the year.

The price of Aave's native cryptocurrency token has increased by 9% in the past 24 hours. Image: The Block.

The uptick in Aave’s price coincides with the token’s futures funding rate shifting from negative to positive. The open interest-weighted funding rate is now 0.0087%, having flipped positive from -0.0136% a week ago, according to Coinglass data.

A positive funding rate suggests that traders are more optimistic about an asset's future value, leading to more long positions than short positions. Under these conditions, traders holding long positions have to pay a fee to those holding short positions to maintain their positions.

The Aave futures funding rate has turned positive over the past 24 hours. Image: Coinglass.

Aave weekly borrowers reach an all-time high

Aave has seen an uptick in usage in recent weeks. Last week, the lending protocol set a new record for weekly active borrowers at around 40,000, according to Dune analytics data. The platform recently came close to reaching an all-time high in weekly depositors, Aave founder Stani Kulechov posted on social media platform X.

Increased usage amid greater volatility across traditional markets resulted in a larger number of liquidations in recent weeks. So far this month, there has been $431.51 million of liquidations on the lending platform, according to The Block’s data. That compares to $73 million for the whole of July.

Weekly lending and borrowing on Aave has reached an all-time high. Image: Dune Analytics.

The wider DeFi lending market was also hit by a notable increase in liquidations this month. Monthly DeFi lending market liquidations surged to a multi-year high in August, with the data still incomplete as we are only halfway through the month, The Block's Data Dashboard shows.

So far, liquidations across various lending and borrowing protocols have totaled over $431 million in August, compared to just $73 million in July. This marks the highest level of liquidations since May 2021, when they reached $671 million.

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