With the major cryptocurrencies regaining lost ground against the bears, the market has returned to the $2 trillion market cap level. This led to huge gains in the altcoin market as the tokens rode the bullish wave. AAVE is one of the largest gainers this week with a whopping 20% uptick. Related Reading: BNB Weekly Active Addresses Surge Over 6% – Is A Rally On The Way? This is largely due to the return of bullish sentiment in the market and positive on-chain development which drove speculation for the token. With the upcoming release of the consumer price index (CPI) data today, an optimistic market awaits to jump on the bullish train. AAVE DAO Eyes New Asset To Deploy On-Chain Yesterday, September 10, Aave Chan Initiative (ACI) released a proposal to the AAVE community to include Coinbase’s cbBTC to Aave v3 on both the Base and the Ethereum Mainnet. According to the proposal, Coinbase’s entry into the wrapped Bitcoin market brings a “unique value proposition to the Aave ecosystem.” ACI also points out how users of Aave will benefit if the proposal passes. Another addition to the pool of assets Aave supports is better asset diversification for users, giving them solid and reliable options to put their money. Overall, the addition of cbBTC on Aave is viewed with much enthusiasm, however, some members of the community are hesitant with the current version of the proposal. Midapple expressed concerns about the proposals, specifically about the timing and implications the proposal has. cbBTC was announced almost a month ago with no details about the mechanism behind the coin. With Coinbase’s centralized nature, the community will have some difficulty protecting the network against possible problems of early adoption like low liquidity. In the case of Coinbase, which is a regulated entity in the United States, regulatory scrutiny will also affect cbBTC in the future and, by extension, the Aave network itself. As of writing, no further revisions have been made to the proposal. The Aave DAO just deployed a dedicated @ether_fi market on Aave. Users will now be able borrow stablecoins like $USDC, $pyUSD, and $FRAX against their @ether_fi weETH liquid staking tokens. pic.twitter.com/s3Met9veuU — Aave Labs (@aave) September 9, 2024 Another development on-chain is the deployment of a dedicated Ether.fi market on Aave, introducing liquid restaking on the platform. According to the thread, the new addition is a glimpse at Aave v4 which has new features like dedicated liquidity instances and risk isolation. Related Reading: Vitalik Buterin Withdraws 760 ETH As Market Turmoil Strikes Ethereum Possible Correction To Occur Around ~$150 The token’s astonishing drive upward has been due to the market recovery from the early September slump. Currently, AAVE is right between the $147-$157 trading range which might provide the bulls with a strong support level. However, the token’s bullish momentum is almost spent up, marked by the relative strength index (RSI) indicating that the bulls are somewhat exhausted. Investors and traders should monitor the token’s movement in the coming days as a correction might push the token below $147 before settling above the latter. Featured image from StormGain, chart from TradingView
The plan would create markets for DAI-replacement USDS on Aave.
Traders could be waiting for Bitcoin to bounce off the $55,724 support opening positions in LTC, FET, MNT and AAVE.
An analyst has pointed out how Aave is currently forming a bearish pattern that led to significant drawdowns the last four times it occurred. Aave Is Showing A TD Sequential Sell Signal Right Now In a new post on X, analyst Ali Martinez has discussed about a Tom Demark (TD) Sequential signal that has taken shape in AAVE’s 1-day price chart recently. The “TD Sequential” here refers to a popular technical analysis (TA) indicator that’s generally used for locating probable points of reversal in any asset’s price. This indicator has two phases: the setup and the countdown. In the first of these, candles of the same polarity (that is, whether red or green) are counted up to nine. When these nine candles are in, the asset may be considered to have reached a point of trend exhaustion. Related Reading: Bitcoin Investors Be Warned: Legendary MVRV Ratio About To Death Cross Naturally, if the candles leading up to the setup’s completion had been green, then the TD Sequential would give a sell signal. Similarly, nine red candles would suggest a potential turnaround towards the upside. The second phase, the countdown, begins as soon as the setup is finished. This phase works much like the first one, except for the fact that candles are counted until thirteen here, not nine. Once these thirteen candles are also in, the price could be assumed to have arrived at another likely top or bottom. Aave has recently finished the first of these TD Sequential phases recently, as the chart shared by the analyst showcases. As is visible in the graph, Aave has finished a TD Sequential setup with nine green candles recently, meaning that the coin could have reached a potential top, at least from the perspective of the indicator. This TD Sequential signal has emerged for the cryptocurrency after its price has significantly outperformed the rest of the sector, showing a sharp rally of around 28% over the past week. In the chart, Martinez has also highlighted the previous four instances of the asset forming this signal. Clearly, the coin’s price went on to register a drawdown following each of these. More specifically, AAVE saw a drop of 27% on average after these signals appeared. Given this past pattern, it’s possible that Aave could end up seeing another similar decline this time as well. Related Reading: Bitcoin Resistance: Here Are The Challenges Ahead For BTC In a more positive development, Aave has seen a burst of activity on its network recently, as data from the market intelligence platform IntoTheBlock has indicated. It would appear that the price surge has attracted a large amount of attention to the asset as the total number of active addresses has reached its highest point in over a year. AAVE Price Following its impressive rally, Aave has broken beyond the $134 mark. Featured image from Dall-E, IntoTheBlock.com, charts from TradingView.com
Layer-2 chains Base and Scroll have contributed to Aave’s recent borrower and depositor growth.
Layer-2 chains Base and Scroll have contributed to Aave’s recent borrower and depositor growth.
Bitcoin may find buyers close to $56,000, benefitting select altcoins such as SOL, XRP, KAS, and AAVE.
Another DeFi protocol fell victim to an exploit on Friday morning. Dough Finance, an open-source protocol to create non-custodial liquidity markets, suffered a flash loan attack that took nearly $2 million in user funds. The project’s team announced they are working to resolve the situation promptly. Related Reading: SEC’s Crypto Stance Is ‘Anti-Investor’: CoinRoutes CEO […]
The attacker exploited unvalidated calldata, resulting in 608 ETH being stolen.
Aave’s decentralized autonomous organization (DAO) is evaluating a proposal to join the Lido Alliance and establish a dedicated market for the liquid staking protocol’s staked Ethereum (stETH) token. The Lido Alliance aims to promote infrastructure development around stETH, focusing on restaking use cases. This alliance emerged in response to the rising dominance of EigenLayer, an […]
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According to a report by data analytics company IntoTheBlock, the volume of high-risk loans on the prominent Aave Protocol is reaching high levels as general loan volume in the DeFi space records multi-year highs. This development is believed to stem from investors exploring various investment strategies in a bid to maximize profits in a highly anticipated crypto bull run. Related Reading: Aave Joins Binance’s BNB Chain Ecosystem – Here’s How Users Benefit Aave’s High-Risk Loans 5% Short Of Liquidation Threshold In its weekly newsletter on June 8, IntoTheBlock highlights that DeFi loans are currently estimated at $11 billion representing the peak value seen in the last two years. As the largest lending protocol, Aave accounts for over 50% of these figures with its users having borrowed about $6 billion. Notably, $1 billion of this debt is categorized as high-risk loans which are placed against volatile collateral. Currently, these loans present substantial risk, with the values of their collateral asset within 5% of their set liquidation threshold. For context, the margin call level or liquidation threshold is a predetermined point at which an asset’s value falls to a level where the lender or broker requires the borrower to add more collateral to maintain the loan or position. Failure to meet this requirement may result in the automatic liquidation of such collateral. When collateral assets hover around this critical threshold as with the high-risk loans on Aave, any minor dip may lead to widespread liquidations. This normally results in the loss of such assets for the borrower. However, in certain conditions where a rapid price decline occurs, the borrower may incur additional losses which may be transferred to their account balance on the lending platform. Furthermore, liquidations from these high-risk loans may exacerbate market volatility, which may result in more price loss, leading to more liquidations in a downward spiral. In addition, many assets getting liquidated at once can create liquidity crunches which can prevent the Aave protocol from operating smoothly. Related Reading: Curve Founder Michael Egorov Clears Aave Loan, Reduces Total Debt To $42.7 Million AAVE Price Overview Meanwhile, AAVE has declined by 5.30% in the last day after facing serious resistance at the $98.20 price zone. The DeFi token is currently valued at $92.30 after an overall negative performance in the past week resulting in an 11.53% price loss. However, according to price prediction site Coincodex, the general sentiment around AAVE remains positive. The team at Coincodex backs AAVE to make a remarkable comeback hitting a price point of $303.87 in the next one month. Featured image from LinkedIn, chart from Tradingview
DeFi protocol Aave plans to launch an “Aave Network” chain after completing its V4 upgrade. Stani Kulechov, the lending protocol’s founder, revealed this in a May 27 social media post, saying: “This is not a drill, Aave Network is planned to come after V4.” While Kulechov failed to provide additional information about the plan, he […]
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Aave is proposing a new framework as it gears up for the DeFi competition, ahead of MakerDAO's upgrade plans this year.
EigenLayer is now the second-largest DeFi protocol behind Lido after taking Aave’s spot.
The creators of a wallet drainer application have registered their business in the United Kingdom.
Block Earner says a recent federal court decision over its Earner and Access products carries "nuanced implications” for the broader crypto industry in Australia.
ETH’s rally is backed by increased on-chain activity and the markets’ anticipation of a network upgrade and spot ETF, but is this enough?
Majority of token holders favor onboard PYUSD in AAVE's Ethereum pool, the ongoing vote shows.
With upgrades to the Aave lending/borrowing protocol and Lens, an open-source social media protocol, the Estonian native kept BUIDLing in a down-market.