DailySun
Aave has made impressive strides, taking the lead as the foremost gainer among the top 100 cryptocurrencies, driven by the overall bullish market trend.
Aave (AAVE) experienced a remarkable 34% increase in the last 24 hours, trading at $355 at the time of this report. The cryptocurrency, associated with a leading lending platform, saw its market capitalization grow to $5.3 billion, positioning it as the 31st largest cryptocurrency.
This marks the first occasion since late August 2021 that Aave has surpassed the $350 threshold.
Initially, the broader cryptocurrency market, inclusive of Bitcoin (BTC), began to rise following the U.S. Consumer Price Index report released on Wednesday.
November’s U.S. inflation rate came in as anticipated at 2.7% year-over-year, which is an increase of 0.1% from October’s 2.6%, according to data from Investing.com.
As a result, Bitcoin once again crossed the $100,000 mark, and the overall global cryptocurrency market capitalization grew by 4%, reaching $3.82 trillion, as reported by CoinGecko
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Secondly, a series of new initiatives have created a positive sentiment around Aave, with its total value locked in decentralized finance sitting at approximately $22 billion.
Balancer announced an upgrade to its decentralized exchange and automated portfolio management system to v3, collaborating with Aave, as reported on Wednesday. This upgrade will enhance the liquidity pools of Balancer v3, enabling users to maximize their yields.
Furthermore, Aave is preparing to launch on Linea, a zk-rollup network supported by Consensys, following approval from its community. This move will facilitate scalability and boost transaction throughput while lowering fees.
Thirdly, President-elect Donald Trump’s DeFi initiative, World Liberty Financial, acquired $1 million worth of AAVE tokens at an average price of $297.8 earlier today.
Finally, there’s been a notable accumulation of Aave among large holders, particularly as the price dipped below the $260 mark on Monday. According to IntoTheBlock data, net inflows to large holders of the asset reached 103,610 AAVE on December 9.
Sudden increases in whale inflows often incite a fear of missing out (FOMO) among retail investors, which could further elevate prices.
Disclosure: This article does not constitute investment advice. The content and materials presented on this page are intended solely for educational purposes.
