Aave (AAVE) recently passed a proposal for voting on whether the asset should move to the Aptos chain, signaling a potential shift in the ecosystem. Liquidity flow has been increasing, setting the stage for a possible market rally. Buyers are showing interest in accumulating AAVE, with a 3.34% price increase in the past 24 hours after a month-long decline of 18.69%. This positive trend is driven by improving liquidity and an upcoming protocol upgrade.
The Aave V3 protocol is set to debut on Aptos, a non-Ethereum-compatible chain with significantly faster speeds of 150,000 transactions per second compared to Ethereum’s 12-15 TPS. This upgrade could lead to faster execution, increased user adoption, and attract more liquidity to the platform. Market sentiment following the announcement has been bullish, fueling expectations of a sustained rally for AAVE.
The total value locked (TVL) in AAVE has been steadily rising, indicating growing confidence from investors. The TVL for AAVE’s V3 has increased from $26.574 billion to $28.075 billion, showing a $1.5 billion rise in a short period. This influx of liquidity could also be attributed to increased activity, with active AAVE addresses crossing 174,840 and significant purchases of AAVE tokens worth over $1 million in the last 24 hours.
Derivative traders are also optimistic about AAVE’s future, with a majority of them taking long positions in the Futures market. The OI-Weighted Funding Rate, which measures Open Interest and Funding Rates to determine market direction, remains positive, indicating that most AAVE contracts are held by traders expecting a price increase. This alignment with bullish sentiment from investors further strengthens the case for a potential market surge for AAVE in the near future.
In conclusion, AAVE’s potential move to the Aptos chain, increasing liquidity flow, and positive market sentiment following the V3 protocol upgrade announcement all point towards a bullish outlook for the cryptocurrency. With growing confidence from investors, rising TVL, and derivative traders taking long positions, AAVE seems poised for a potential market rally. As more retail participation and long-term holding of AAVE tokens are observed, the possibilities for a sustained price increase are further reinforced. Stay tuned for more updates on Aave as the ecosystem continues to evolve.
