Bitcoin
BTC$64 243.42

-3.49%

Ethereum
ETH$3 152.93

-2.56%

Tether
USDT$0.999827

-0.02%

Binance Coin
BNB$606.35

0.41%

Solana
SOL$146.31

-6.30%

USD Coin
USDC$0.999992

0%

Aave v3 launch triggers 50% rally from long-term descending channel pattern


31 Mar 2022

#Aave

AAVE price broke from its long-term downtrend after the launch of Aave v3 added support for six different blockchain networks in the DeFi space. The decentralized finance (DeFi) market has been undergoing a period of maturation over the past year and many of last year's fast risers have faded into obscurity but this does not mean the formerly "famous" protocols have not continued to build.

One blue-chip project that is regaining momentum is Aave (AAVE), a non-custodial liquidity protocol that allows users to lend, borrow or stake their assets to earn yield from their holdings.

Data from Cointelegraph Markets Pro and TradingView shows that the price of AAVE has rallied 110% from a low of $114 on March 15 to a daily high at $242 on March 29 as its 24-hour trading volume spiked 442% to $1.26 billion. Three reasons for the price resurgence in AAVE have been the release of AAVE v3, the expansion of the protocol's ecosystem and steadily improving fundamentals.

AAVE v3

Traders have long anticipated the release of Aave v3, which was announced on March 16. According to Aave, the new features will help provide greater capital efficiency, increased security and cross-chain functionality while also helping to promote decentralization across the DeFi ecosystem.

Some of the new features include portals, which offer only “permit listed” bridge protocols that have been approved by Aave governance to facilitate cross-chain transactions, a high-efficiency mode (eMode) that allows users to extract the most out of their collateral by providing a higher borrowing power within the same asset category and an isolation mode, which limits the available collateral for newly listed assets as a way to help limit exposure and risks to the protocol.

Aave v3 is currently deployed on Polygon (MATIC), Fantom (FTM), Avalanche (AVAX), Arbitrum (ARbit), Optimism (OTO) and Harmony (ONE), with more integrations planned in the future.

Ecosystem expansion

A second factor bringing fresh momentum to AAVE has been the expansion of the Aave ecosystem, which includes launching on new networks and forming partnerships and integrations with other DeFi protocols. On top of now being available on seven different networks, Aave continues to explore new networks on which to launch, including Metis.

Aave has also seen an uptick in support from wallet providers and Web3 aggregators, including Instadapp, Debank, 1inch, Paraswap, Zapper, DeFisaver and Zerion.

TVL is on the rise

A third sign of the building strength for Aave can be found by looking at the community behind the protocol, which has continued to see new users onboard into the ecosystem despite the wider struggles of the DeFi sector. According to data from Dune Analytics, there are now more than 92,000 unique wallet addresses that have engaged with the AAVE protocol. With the number of chains supported by Aave continuing to increase, there is a strong possibility that this number will rise further in the future.

As a result of new users and the addition of support for new chains, the total value locked (TVL) on the protocol is once again on the rise and currently sits at $13.99 billion, according to data from DeFi Llama.

The recent addition of support for liquid staking assets, such as stETH from Lido Finance, has also helped boost the TVL on AAVE, possibly because ETH stakers are looking to maximize their return. VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for AAVE on March 24, prior to the recent price rise. The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity. As seen in the chart above, the VORTECS™ Score for AAVE climbed to a high of 73 on March 24, around one hour before the price began to increase 45.8% over the next five days.


Related

What Is Crypto Lending and How Does It Work?
What Is Crypto Lending and How Does It Work?
Exness Trade App: Made for the frequent trader
Exness Trade App: Made for the frequent trader
The Rise of AI Chatbots: 4 To Keep Your Eye On
The Rise of AI Chatbots: 4 To Keep Your Eye On
Ensuring security and trust: How Exness prioritizes PCI DSS compliance for its traders
Ensuring security and trust: How Exness prioritizes PCI DSS compliance for its traders

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 82% 25 $64 243.42 -3.49% 4.26% $1 264 942 222 801 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 74.8% 49 $3 152.93 -2.56% 4.77% $384 809 516 221 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.4% 1 $0.999827 -0.02% -0.02% $110 444 364 436 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 86.4% 18 $606.35 0.41% 11.78% $89 490 030 102 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 64.4% 71 $146.31 -6.30% 9.36% $65 406 625 986 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 92.4% 2 $0.999992 0% 0% $33 408 288 044 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 66.4% 62 $0.527096 -3.28% 6.24% $29 058 342 386 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 71.6% 60 $0.151243 -6.18% 1.98% $21 782 660 326 DOGE 7 days price change
9 Toncoin (TON) TON Toncoin predictions 68.4% 65 $5.50 -4.04% -10.12% $19 113 139 483 TON 7 days price change
10 Cardano (ADA) ADA Cardano predictions 64% 72 $0.475453 -5.02% 6.16% $16 942 250 040 ADA 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 62% 82 $0.000026 -5.45% 14.77% $15 083 952 085 SHIB 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 65.2% 66 $36.12 -6.87% 6.17% $13 656 036 220 AVAX 7 days price change
13 Lido stETH (STETH) STETH Lido stETH predictions 91.6% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
14 Polkadot (DOT) DOT Polkadot predictions 66% 64 $6.96 -4.17% 4.65% $10 008 368 677 DOT 7 days price change
15 TRON (TRX) TRX TRON predictions 86% 21 $0.114171 1.25% 4.04% $9 998 484 970 TRX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.