The DeFi sector is in need of a new injection of developments to halt the persistent decline it has been experiencing in the past two weeks, and top DeFi lending protocol Aave has emerged to provide some new updates by taking on non-fungible tokens (NFTs) and blockchain gaming, two growing markets in the crypto space as well, with Axie Infinity. In an official announcement, Aave stated that it is sponsoring the latest Axie gaming season for Axie Community Alpha.
Axie is inspired by the ever-popular Pokemon game, except that users can battle others with NFTs, each representing a different, unique creature that belongs to the player. NFTs are gaining traction this year and is considered an entirely speculative market as the value of NFTs tend to be baseless and subjective, making it hard to predict.
Under this partnership, Aave has provided $4,000 USD worth of AAVE tokens as part of the winning prize in the season. Moreover, AAVE holders that have more than 0.65 AAVE or staked AAVE are eligible to earn an exclusive AAVE-themed NFT. This collaboration represents an intersection of DeFi, NFTs and blockchain gaming, all of which have seen significant gains in both market growth and product development this year.
DeFi has slipped by 60-70% in the past month as it seems to be losing its edge over traditional crypto assets, or projects with greater foundation and core. The sector, which shot to fame this year, is now running dry on rewards and incentives, while market participants are turning back to Bitcoin and other altcoins, which have shown tremendous strength recently. Bitcoin in particular created another record this year by almost hitting $16,000.
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