Aave's LEND Token Is Now Up 1,600% in 2020

There seems to be no stopping the LEND freight train: The native token of the decentralized lender Aave has risen by over 100% this month alone and is reporting stellar gains for the year so far.

At press time, LEND was up over 1,600% since Jan. 1, with the major part of the rally occurring over the past seven weeks.
The rapid gains look to have been driven by short-term traders and the rally may be over-extended, according to analysts at IntoTheBlock, a blockchain intelligence company.
However the token's value is also reflecting impressive growth in actual users of the lending protocol and optimism surrounding its recently launched Credit Delegation product.
Price rallies driven by fundamentals usually attract stronger buying pressure from investors.
Interestingly, the number of long-term LEND holders, as represented by addresses with coins static for more than a year, has declined 4% on a year-to-date basis to 151,730, also according to IntoTheBlock.
That may indicate early users leaving the platform, but could also further indicate activity on Aave, with holders lending out their tokens.

Addresses holding LEND for over one year.

Meanwhile, new users, or the number of addresses holding LEND for less than a month, has grown by almost 50% in just the last 30 days.
At press time, there are 4,630 LEND addresses compared to 1,100 addresses at the end of May.
Some argue that speculative frenzy is driving prices higher, drawing in traders, and the token looks vulnerable to a sudden bout of profit-taking.
“The current rally may be overextended as retail users enter the frenzy and large players appear to be selling,” analysts at IntoTheBlock told The Defiant.
The cryptocurrency was last seen trading at $0.287, representing a 14.7% gain on a 24-hour basis, according to data source Messari.
Prices hit a new 2020 high of $0.31 during the European trading hours on Friday.

Disclosure: The author holds no cryptocurrency at the time of writing.

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Omkar Godbole

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