AAVE Price Hits 18%, Why It’s Pumping Today?

by

As a seasoned crypto investor with battle-scarred fingers from riding the rollercoaster of digital assets, I can confidently say that the current surge in AAVE is nothing short of exhilarating. Having been through numerous market cycles and bearish stretches, it’s always a breath of fresh air to witness such impressive gains.

In the midst of continuous struggles between rising and falling stock prices, AAVE’s price has experienced two consecutive days of growth, surging by 18% over the past 24 hours. Interestingly, the token had been on an upward trend for several days but dropped due to a recent cryptocurrency market downturn, affecting its overall performance. However, this trend is reversing today, and there are several factors contributing to this shift.

Why is AAVE Price Pumping Today?

AAVE, one of the highest earning cryptocurrencies at present due to its strong recent performance, also stands out as a top DeFi protocol with notable services and collaborations. One such potential collaboration is with Chainlink’s Smart Value Recapture (SVR), a system designed to redirect earnings back to users from the highest possible value (Maximum Extractable Value – MEV).

The early stages of this partnership are under negotiation since the Aave Automated Market-Making (AMM) system encounters challenges regarding Maximal Extractable Value (MEV) extraction, according to the Aave proposal.

Recently, an issue known as Maximal Extractable Value (MEV) has emerged with the operation of Aave, which calls for some form of enhancement or optimization. This problem arises due to the potential for profit by strategically ordering transactions in a way that extracts maximum value from the protocol.

Through Chainlink SVR, Aave can effortlessly channel 40% of MEV liquidation earnings back to its users. This mechanism could also substantially impact value distribution and management, ultimately fostering advantages for ecosystem participants. While this integration is still being developed, the community’s enthusiasm has already noticeably boosted the token price.

1) The trading volume for Aave has increased by 62%, reaching a total of $1.44 million, causing the price to jump to $379.02 and resulting in a 18% increase over the past day. This growth has now lifted the token out of its decline, giving it a monthly gain of 107%. Currently, AAVE is at a three-year high and is only 43% below its all-time high ($666.86) set in 2021.

It’s noteworthy that all DeFi tokens are experiencing a surge in value, capturing investor interest which has caused the market cap to increase by 5% and trading volume to spike by 20%. Analysts anticipate this could be the start of a rally for AAVE prices, as they expect further growth.

AAVE Price to Hit $410 Next?

In recent days, the ownership of Aave exchange has experienced notable decline, according to Nansen reports, with a 2% drop observed. This decrease occurred despite an increasing bullish sentiment towards the token, causing investors to hold onto their Aave tokens instead of selling them. Consequently, this has been generating selling pressure on the token. On the other hand, the Trump project has also played a significant role in creating buying pressure, as World Liberty Financial recently acquired 6,000 AAVE tokens, equating to approximately $2.2M today.

As for the technical indicators, the RSI is neither showing bullish nor bearish signs, and the moving averages suggest a favorable outlook for buyers. This has led several analysts, including Ali, to forecast additional gains, as the token’s chart appears to be forming the “Adam & Eve” pattern. Notably, the token has breached the $342 resistance level and is currently trading at $379. The next significant resistance level is at $386; if it surpasses this, Ali predicts that the Aave price could reach around $410.

What’s In There For You?

The Aave cryptocurrency is currently thriving, having reached a three-year peak. Over just the past month, it has generated an impressive 107% return, even amidst the downturn in the overall crypto market and Bitcoin price drop. In the last 24 hours alone, the AAVE price has climbed by 18%. Analysts believe that this trend will continue, possibly leading the DeFi token to reach $410 or more if the collaboration between Aave and Chainlink does not materialize.

Read More

2024-12-24 11:42