Aave’s latest funding indicates that the decentralized finance (DeFi) market still looks attractive to investors, including Venture Capital companies. The team behind Aave disclosed that they raised over $20 million in a new investment round. The funding round saw the participation of popular digital currency-focused companies like Blockchain.com Ventures.
Notably, today’s development comes just when the frenzy in the DeFi market calmed, precisely since the start of October. The market valuation is currently sitting a little above $11 billion.
Aave Protocol Raises $25 Million
Per the report, leading decentralized lending and borrowing protocol raised a total of $25 million in the latest investment round. Among others, Blockchain.com Ventures, Blockchain Capital, and Standard Crypto led the funding round. Using the fresh capital, the team behind the protocol intends to expand and improve the protocol’s services.
Specifically, they plan to boost the team to better serve the growing Asian market; according to Stani Kulechov, the CEO of the DeFi project. Additionally, the Aave team intends to use the capital raised to bring more institutional players to the DeFi market. As strategic investors, the crypto VC companies became a part of the protocol’s governance community.
Going forward, Blockchain.com Ventures, Blockchain Capital, and Standard Crypto can participate in the project’s key decision-making and staking. Meanwhile, the development adds to the list of funds raised by the project launch. Recently in July, the DeFi project raised about $3 million in a venture capital round, which was Framework Ventures and Three Arrows Capital.
More so, the project initially raised $17 million from its initial coin offering (ICO) conducted in the past three years.
Aave’s Success Since Launch
Aave is one of the largest decentralized finance protocols and offers digital asset lending and borrowing services. Being the second-largest lending protocol, more than $1 billion in digital currencies locked in the protocol. This is in accordance with the information provided by DeFi Pulse.
In general, the decentralized market holds more than $11 billion in digital currencies at the time of writing. The market is dominated by Uniswap, a decentralized exchange (DEX) with a percentage of over 27. The market valuation has been gradually declining, which brought about less congestion on the Ethereum network.