- Aave protocol has raised $25 million from three prominent crypto VC firms.
- The capital will be used to expand Aave’s team and attract institutions to DeFi.
The decentralized finance (DeFi) market is notably another big story in the cryptocurrency industry this year. In addition to several project launches, the DeFi market has grown to a total valuation of over $11 billion, which somewhat looks promising for investors. Today, Aave protocol, one of the biggest projects in the DeFi market, has raised over $20 million from crypto-focused companies.
Aave protocol to institutionalized DeFi use
As reported, Aave disclosed it raised about $25 million in a new investment round. The protocols latest fundraise gained prominent cryptocurrency VC companies’ participation, which includes Blockchain.com Ventures, Blockchain Capital, and Standard Crypto. Per the words of Stani Kulechov, the CEO of Aave protocol, the fresh capital will be utilized to reinforce and expand the protocol’s team.
By doing so, the Aave team hopes they can draw institutional investors more closer to the decentralized finance market. They also intend to boost their services in the Asian market, as per the report. Following the strategic fundraise today, the cryptocurrency VC companies will now be a part of the Aave protocol’s governance and staking. Noteworthily, this is not the first-ever fundraise round to be conducted by the decentralized finance project.
Aave protocol has previously raised $3 million in a separate investment round this year. Moreover, the protocol bagged up to $17 million via its initial coin offering (ICO) in the past three years.
The DeFi protocol in question enables lending and borrowing services in a decentralized manner. According to the information from DeFi Pulse, Aave protocol is currently ranked as the third-largest project in the decentralized finance market. In an industry with a valuation of over $11 billion worth of digital currencies, Aave boasts more than $1 billion in the total value assets locked.