Bitcoin‘s price has experienced fluctuations recently, but the dip caused by short-term concerns is not overly concerning. Anticipations for further interest rate reductions by the Federal Reserve are becoming more robust. In this context, major financial institutions like Morgan Stanley have begun to offer Bitcoin Exchange-Traded Funds (ETFs) to their clientele. These developments render recent price drops less significant in the medium to long term. However, what’s happening with AAVE?
What’s New with AAVE?
Genesis recently transferred $1.5 billion in Bitcoin and Ethereum, yet this did not lead to a notable decline in Bitcoin’s value. Conversely, positive developments, as previously mentioned, enhance the medium and long-term perspectives. So, what are the latest updates regarding AAVE?
Aave’s governance token, AAVE, has been on an upward trajectory since early July. It has reached a three-month high, currently trading at $115.8. More gains may be on the horizon. But why is this happening?
Why is AAVE Gaining Popularity?
Data from Santiment suggests that AAVE’s daily active addresses are at their highest since March. With 1,029 addresses interacting daily, investor interest is rising. This increase in network activity aligns with a near 10% price surge, indicating a positive trend.
Additionally, the launch of Aave V3.1 on July 31 has boosted AAVE’s significance, especially as centralized crypto lenders like Genesis fold. On-chain data reveals a 95% increase in transaction volume in the past 24 hours, crossing $335 million for the first time since March 6.
AAVE Price Prediction
AAVE, which previously peaked at $666, is attracting more attention from large investors. Data from Lookonchain shows that whale addresses have accumulated $7 million worth of AAVE within two days of the new version’s launch. The Chaikin Money Flow (CMF) data confirms this strong accumulation. As Bitcoin remains weak and other altcoins suffer, AAVE stands resilient.
Key Takeaways
The Elder-Ray Index stands at 21.27, indicating bullish sentiment. Positive investor sentiment and strong market trends suggest that if Bitcoin remains stable, AAVE could see a new peak above $120 soon.