After the investment and research division of the massive cryptocurrency exchange Binance, Binance Labs, disclosed in a blog post that it had made an investment in the protocol, the native token of the decentralized cryptocurrency derivatives trading platform Aevo surged on Tuesday.At $0.9, the highest price since mid-May, AEVO saw a 10% increase. Nevertheless, CoinGecko data indicates that it’s still around 70% below its March opening price of about $3.
The amount of the investment, how Binance Labs obtained the stake, and whether or not it purchased tokens were all kept a secret. Using the OP tech stack, Aevo, a rebranded version of Ribbon Finance, is constructed on top of its own Ethereum layer-2 (L2) network. By settling deals on the Ethereum blockchain, it enables users to trade tokens, perpetual futures, and options for cryptocurrencies prior to their introduction. Because of farming incentives prior to the token launch, the platform experienced a surge in trading activity in February and the first part of March, with daily derivatives trading volume reaching $1 billion. Since then, traffic has waned; as of late, DefiLlama stats reveal that daily traffic was considerably below $100 million.
“As part of the future roadmap, Aevo will launch vault strategies, yield products, and Aevo staking,” Binance Labs said. “It will expand its ecosystem of derivative products by allowing builders to deploy their dApps permissionlessly on Aevo L2 to leverage its growing user base and unique features.”