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Aave Price above $300 for First Time since November 2021 Fueled by Robust Fundamentals
12/16/2024 22:18
The demand for AAVE has significantly spiked since the support of the DeFi protocol by Donald Trump-backed World Liberty Financials (WLFI).
Key Notes
- Aave price has rallied more than 44 percent in the past week to trade above $300 for the first time since November 2021.
- The Aave protocol has registered a significant increase in borrowing activities on the Ethereum network.
Amid the ongoing reawakening of the altcoin industry, led by large-cap crypto projects, Aave (AAVE), a mid-cap DeFi project, has registered palpable gains in the past few weeks. After rallying more than 44 percent last week, AAVE price surged around 6.9 percent in the past 24 hours to trade at about $383 on Monday, December 16, during the early New York session.
For the first time since November 2021, AAVE price AAVE $377.8 24h volatility: 3.2% Market cap: $5.69 B Vol. 24h: $1.72 B has registered a weekly close above $300, thus indicating that the bulls are in control. From a technical analysis standpoint, AAVE price has broken out of a weekly megaphone pattern, suggesting the uptrend has more fuel.
Moreover, the weekly Relative Strength Index (RSI) surged above the 70 percent level for the first time since April 2021, indicating the onset of the macro bull run in the near term. As a result, AAVE price is well positioned to reach a new all-time high (ATH) in the near term, but day crypto traders should be cautious of a potential retrace to retest the recent bullish breakout at around $288.
Favoring Fundamentals for Aave Ecosystem
The Aave protocol has grown to a major decentralized financial (DeFi) platform on the Ethereum blockchain. As an open-source and non-custodial protocol, which allows users to earn interest on deposits and seamlessly borrow assets, the Aave platform has grown to over $22 billion in total value locked (TVL).
As of this writing, the Aave platform has facilitated more than $15.8 billion in borrowed assets. More Aave platform users have staked their assets to earn passive income, whereby over $1.6 billion has already been locked, which represents 20 percent of the total market capitalization.
According to market data analysis by IntoTheBlock, the Aave platform remains unrivaled in the DeFi arena with a whopping 45 percent of the market share. Remarkably, Aave’s lending activities on the Ethereum network have experienced a sharp uptick in the recent past, with net inflows of over $500 million last week.
Most importantly, the Aave network has registered a notable increase in whale activity, especially in transactions exceeding $100K. For instance, Donald Trump’s World Liberty Financial (WLFI) has accumulated over 4 million AAVE tokens worth more than $1.4 million at the time of this writing.
According to market data from CoinGlass, Aave’s futures open interest (OI) surged from around $37 million in April to over $412 million at the time of this writing. However, the overall supply of Aave on centralized exchanges has remained relatively high, thus weighing down on bullish sentiment.
Nonetheless, the Aave platform is well-positioned to grow exponentially in the near term amid the mainstream adoption of digital assets around the world.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
