Aave Governance Token Price Surge

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

Currently, Aave’s price is $110.09. It rebounded from around $90 late last week and is up over 65% since the beginning of the year.

The token’s price increase coincides with a significant shift in the futures funding rate, moving from negative to positive. The open interest-weighted funding rate is now 0.0087%, up from -0.0136% a week ago, according to Coinglass data.

A positive funding rate indicates increased trader optimism about Aave’s future value, leading to more long positions than short ones. Traders holding long positions pay fees to those with short positions to maintain their positions.

Aave Weekly Borrowers Reach an All-Time High

Aave has seen increased usage in recent weeks. Last week, it set a new record for weekly active borrowers at around 40,000, as per Dune analytics. The platform also approached an all-time high in weekly depositors, as noted by Aave founder Stani Kulechov on social media.

Increased market volatility has led to a rise in liquidations recently. This month, $431.51 million in liquidations have occurred on Aave, compared to $73 million for the whole of July.

The broader DeFi lending market also experienced a surge in liquidations this month. Liquidations in August reached over $431 million, marking the highest level since May 2021.