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Information about Aave (AAVE)
Aave is a decentralized lending protocol (Lending DeFi) that allows users to lend and borrow multiple cryptocurrencies using stable coins or other coins with different interest rates.
Aave has the same features and functions as the Compound protocol, a leading DeFi. However, Aave also has its own unsecured loan, exchange rate conversion, Flash Loan, and separate collateral.
LEND is inherently a utility token used in ETHLend (precursor of Aave). LEND holders will have benefits such as reduced fees, an improved loan-to-value ratio, rewards from staking, etc.
However, since ETHLend has been decommissioned and replaced by Aave, the LEND coin has been improved to take over roles in platform governance and adopt a decentralized model.
News
AAVE is likely to achieve new highs as liquidity increases. However, in the past 24 hours, it fell by 4.74% due to large investors engaging in profit-taking.
Spot traders outpaced large holders, buying nearly four times as much AAVE, amounting to 2.39 million USD, within four days. This suggests increased retail activity in the market.
While AAVE’s value remains strong, with a TVL of 18.433 billion USD, the derivatives market indicates bearish trends, with increasing open interest and a long-to-short ratio below 1.
Aave is deploying Chainlink’s SVR to recover Oracle-related MEV lost in liquidation events. The integration supports cross-chain payments and converts service fees into LINK cryptocurrency.
In the first six months, the recaptured value will be split 65% for Aave and 35% for Chainlink. This setup aims to benefit the ecosystems generating the value.
Experts emphasize the Aave-Chainlink collaboration’s significance in enhancing DeFi financial security while optimizing liquidation algorithms.
The confirmation hearing for Paul Atkins as SEC Chair on March 27 is expected to shift crypto regulation, promoting innovation and market confidence.
Rumored AAVE buybacks by March 31 could reduce the circulating supply, potentially raising prices if demand holds steady, coinciding with the end of Ethena’s airdrop campaign.
Despite potential hurdles, AAVE has attracted significant liquidity recently, experiencing a 6.66% price increase over the past week. However, to initiate a substantial upward movement, it must break key resistance.
Current market dynamics show reducing selling pressure among traders, indicating a potential shift towards more bullish sentiment. AAVE’s positive indicators in the derivatives market could further fuel its anticipated price surge.
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