The native token of the decentralized crypto derivatives trading platform Aevo experienced a significant price surge on Tuesday after Binance Labs, the investment and research division of the major crypto exchange Binance, announced its investment in the protocol.

This news, revealed in a recent blog post, sparked a 10% increase in the token's value, pushing it to $0.90—its highest price since mid-May. Despite this uptick, the token remains nearly 70% below its initial trading price of around $3 in March, according to CoinGecko data.

Binance Labs did not disclose the exact amount of its investment or details regarding how it acquired the stake, including whether it purchased tokens directly.

Aevo, a rebrand of Ribbon Finance, operates on its own Ethereum layer-2 (L2) network, leveraging the OP tech stack. The platform enables users to trade crypto perpetual futures, options, and tokens pre-launch through an off-chain order book, with trades settled on the Ethereum blockchain. Aevo saw a surge in trading activity in February and early March, exceeding $1 billion in daily derivatives trading volume, driven by farming incentives before the token's launch. However, recent trading volumes have significantly declined, with daily activity falling below $100 million, as reported by DefiLlama.

Binance Labs expressed optimism about Aevo's future, outlining plans for the platform's expansion. "As part of the future roadmap, Aevo will launch vault strategies, yield products, and Aevo staking," Binance Labs stated. "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."

This strategic investment by Binance Labs highlights Aevo's potential for growth and innovation in the decentralized finance space, as it aims to broaden its range of offerings and attract more users to its platform. The Aevo community is closely watching these developments, anticipating further advancements and increased activity in the coming months.