Aave jumped almost 19% to reach $ 355 in the last 24 hours, according to Coindesk data, leading the first 40 cryptocurrencies by percentage of daily gain, investors responded to its recent expansion of the Aptos and the remarks of the presidency of the Federal Reserve Jerome Powell.
What is it and why it’s important
Aave is a decentralized finance protocol which allows users to lend and borrow cryptocurrencies without intermediaries. Loans are managed by intelligent contracts, with borrowers liable to compete in value higher than their loans.
The Aave token underlies this system. It can be marked out to support security and earn rewards, used as a guarantee for loan and grants rights to the governance of holders. In return, token holders benefit from voting power and costs of costs, which makes Aave central to protocol operations.
Extension of Aptos
On August 21, Aave Labs announced that Aave V3 was posted on Aptos, its first deployment on a non -EVM blockchain. The developers have rewritten the code base in the movement language, reconstructs the user interface and adapted the protocol of the Aptos virtual machine.
The launch was taken care of by audits, a capture-the-Drapeau Mainnet and a Bug bonus competition of $ 500,000. The first market supports assets, including APT, Susde, USDT and USDC, with supply and borrowing ceilings to increase gradually. Chaos laboratories and blade risks have carried out risk assessments, and ChainLink provided price food.
The founder and CEO of Aave Labs, Stani Kulechov, described the launch of “incredible margin”, highlighting the change beyond EVM channels after five years of exclusivity.
Jackson Hole’s speech by Jerome Powell
Friday morning, the president of the Fed chair Jerome Powell, at the Jackson Hole economic policy symposium, added momentum. Powell said the risk balance between inflation and employment had changed, which indicates that interest rate reductions could start in September.
The markets considered its remarks as dovantes, CME Fedwatch data showing the expectations of a quarter of a quarter in September at 83%, compared to 75% earlier in the week. The American eiquities and the crypto have gathered widely since Powell’s speech, with Aave among the biggest movers.
Resurface of the WLFI exhibition
Another factor that analysts say may not be entirely at a price is the participant of Aave in World Liberty Financial (WLFI). In October 2024, WLFI proposed to launch its own Aave V3 instance on Ethereum MAINNET. As part of the arrangement, Aavedao received 20% of WLFI protocol costs and 7% of its governance tokens.
Simon, analyst at Delphi Digital, noted on Saturday that with the WLFI token which should start to negotiate on September 1 at an implicit evaluation of $ 27.3 billion, the AAVE allowance could be worth around 1.9 billion dollars – more than a third of its 5 billion dollars entirely diluted. He argued that this exhibition could contribute to the Aave rally, even if investors only revisit its importance now.
Strengths of technical analysis
- According to the Technical Analysis Data Model of Coindesk Research, Aave published significant gains during the 24 -hour negotiation period at 12:00 pm UTC at August 23 at 11:00 am UTC, from $ 297.75 to $ 353.22 – an increase of 18.65% which reflects increasing confidence in the strategy of extension of the platform.
- The digital asset exchanged in a range of $ 62.11, fluctuating between $ 294.50 and $ 356.60, the most pronounced price movement occurring at 2:00 p.m. UTC on August 22 when the trading volume reached 340,907 units, considerably exceeding the daily average of 102,554 units.
- Supported purchase pressure was observed during the last hour of the analysis period of 10:49 UTC at 11:48 UTC on August 23, aave from $ 349.61 to $ 353.79.
- Negotiation volumes systematically exceeded 3,000 units in key prices at $ 352.55, $ 353.98 and $ 355.52, compared to the average session of 1,647 units, indicating that market players describe as a methodical institutional positioning.
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