Aave Drives Over 150% From Lows Due as Fundamentals Remain Strong
Aave (AAVE) has rapidly become one of the best-performing crypto-assets over the past few days. From its lows set late last week, the coin has gained approximately 150%, rallying from $27 to $67 as of this article’s writing.
AAVE is currently the best-performing crypto-asset in the top 100 by market capitalization. The coin trades up 25% in the past 24 hours alone, outpacing similar rallies in the prices of Yearn.finance, SNX, Uniswap, and countless other top Ethereum-based coins. AAVE is benefiting from an influx of capital that is being seen in the DeFi space, which has been triggered by strong fundamental trends.
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AAVE Surges Toward Multi-Week Highs as DeFi Bull Run Returns
It appears that the DeFi bull run that we experienced in the summer has returned in full force.
AAVE, as aforementioned, is up 25% in the past 24 hours alone as buying volume picks up.
Analysts say that contributing to this rally was a large number of short liquidations, which result in rapid price action to the upside.
Prior to the recent rally, there were many traders that were shorting leading DeFi tokens such as AAVE. Due to the rapid rally in the summer, most expected to coin to see a similarly violent retracement, which took place over the span of September and October.
While there were many that made profits with these positions, the time for shorting is over. A large influx of spot buying activity has forced many investors out of their short positions, leading to the rapid rallies we have seen in the prices of AAVE, Yearn.finance, and other coins pertaining to DeFi.
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Behind the rally in the price of the leading altcoin are strong fundamental trends. While AAVE is still below its all-time highs, certain aspects of the coin’s broader ecosystem are stronger than ever.
According to DeFi Pulse, the value locked in Aave remains above $1 billion. There is $1.19 billion worth of cryptocurrency locked in the protocol, which can be used or added to be any Ethereum user as they please.
AAVE’s rally also comes shortly after Aave completed a transition from the LEND token to the new one. This transition strengthens the Aave ecosystem by making it more decentralized.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Aave Drives Over 150% From Lows Due as Fundamentals Remain Strong