AAVE Surges 19% Amid Aptos Expansion and Powell’s Dovish Remarks
AAVE rose nearly 19% to $355 in 24 hours, leading the top 40 cryptocurrencies by percentage gain. Factors influencing this surge include:
- Recent expansion of Aave on the Aptos blockchain.
- Dovish remarks from Federal Reserve Chair Jerome Powell, suggesting potential interest rate cuts in September.
- Potential value from Aave's stake in World Liberty Financial (WLFI).
Aave Overview
Aave is a decentralized finance protocol enabling cryptocurrency lending and borrowing without intermediaries, managed through smart contracts. The AAVE token facilitates governance, staking, and acts as collateral for loans.
Aptos Expansion
Aave V3 launched on Aptos, marking its first deployment on a non-EVM blockchain. The codebase was rewritten in Move language with a focus on security and user experience. Initial market supports assets like APT, sUSDe, USDT, and USDC.
Powell's Speech Impact
Powell’s speech indicated a shift in inflation-employment risk balance, increasing market expectations for a quarter-point cut in September from 75% to 83%. This contributed to a rally in U.S. equities and cryptocurrencies, including AAVE.
WLFI Exposure
Aave has a stake in WLFI, which proposed launching an Aave V3 instance on Ethereum mainnet. Analysts suggest this exposure could be valued at around $1.9 billion, significantly impacting AAVE's market performance.
Technical Analysis
- AAVE increased by 18.65%, trading between $294.50 and $356.60 in the analyzed period.
- Significant volume spikes occurred, with trades peaking at 340,907 units on Aug. 22, well above the daily average.
- Buying pressure remained strong towards the end of the analysis period, indicating institutional interest.