Skip to main content

Aave v3 launch triggers 50% rally from long-term descending channel pattern

AAVE price broke from its long-term downtrend after the launch of Aave v3 added support for six different blockchain networks in the DeFi space.

The decentralized finance (DeFi) market has been undergoing a period of maturation over the past year and many of last year's fast risers have faded into obscurity but this does not mean the formerly "famous" protocols have not continued to build.

One blue-chip project that is regaining momentum is Aave (AAVE), a non-custodial liquidity protocol that allows users to lend, borrow or stake their assets to earn yield from their holdings.

Data from Cointelegraph Markets Pro and TradingView shows that the price of AAVE has rallied 110% from a low of $114 on March 15 to a daily high at $242 on March 29 as its 24-hour trading volume spiked 442% to $1.26 billion.

AAVE/USDT 4-hour chart. Source: TradingView

Three reasons for the price resurgence in AAVE have been the release of AAVE v3, the expansion of the protocol's ecosystem and steadily improving fundamentals.

AAVE v3

Traders have long anticipated the release of Aave v3, which was announced on March 16.

According to Aave, the new features will help provide greater capital efficiency, increased security and cross-chain functionality while also helping to promote decentralization across the DeFi ecosystem.

Some of the new features include portals, which offer only “permit listed” bridge protocols that have been approved by Aave governance to facilitate cross-chain transactions, a high-efficiency mode (eMode) that allows users to extract the most out of their collateral by providing a higher borrowing power within the same asset category and an isolation mode, which limits the available collateral for newly listed assets as a way to help limit exposure and risks to the protocol.

Aave v3 is currently deployed on Polygon (MATIC), Fantom (FTM), Avalanche (AVAX), Arbitrum (ARbit), Optimism (OTO) and Harmony (ONE), with more integrations planned in the future.

Ecosystem expansion

A second factor bringing fresh momentum to AAVE has been the expansion of the Aave ecosystem, which includes launching on new networks and forming partnerships and integrations with other DeFi protocols.

On top of now being available on seven different networks, Aave continues to explore new networks on which to launch, including Metis.

Aave has also seen an uptick in support from wallet providers and Web3 aggregators, including Instadapp, Debank, 1inch, Paraswap, Zapper, DeFisaver and Zerion.

Related: Aave launches v3 liquidity pool following unanimous governance decision

TVL is on the rise

A third sign of the building strength for Aave can be found by looking at the community behind the protocol, which has continued to see new users onboard into the ecosystem despite the wider struggles of the DeFi sector.

Total Aave users over time. Source: Dune Analytics

According to data from Dune Analytics, there are now more than 92,000 unique wallet addresses that have engaged with the AAVE protocol. With the number of chains supported by Aave continuing to increase, there is a strong possibility that this number will rise further in the future.

As a result of new users and the addition of support for new chains, the total value locked (TVL) on the protocol is once again on the rise and currently sits at $13.99 billion, according to data from DeFi Llama.

Total value locked on Aave. Source: Defi Llama.

The recent addition of support for liquid staking assets, such as stETH from Lido Finance, has also helped boost the TVL on AAVE, possibly because ETH stakers are looking to maximize their return.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for AAVE on March 24, prior to the recent price rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (grey) vs. AAVE price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score for AAVE climbed to a high of 73 on March 24, around one hour before the price began to increase 45.8% over the next five days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.



from https://ift.tt/AN65kHd
https://ift.tt/kgGnVD8
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

ENS DAO delegates offer perspective on DAO governance and decentralized identity

AlphaWallet CEO and Spruce co-founder talk about their roles as contributors to the Ethereum Name Service following the project's recent airdrop. Earlier this month, the Ethereum Name Service, or ENS, formed a decentralized autonomous organization, or DAO, for the ENS community.  Cointelegraph spoke to two ENS DAO delegates who applied for the opportunity to represent the community and stay involved in the decision making process: Victor Zhang, CEO of AlphaWallet, an open source Ethereum wallet, and Gregory Rocco, co-founder of Spruce, a decentralized ID and data toolkit for developers. Zhang spoke about his experience as an external contributor to ENS and an early supporter since 2018. Zhang initially sought to help ENS by offering Alpha Wallet as a user-friendly tool for  resolving .eth names and cryptocurrency wallet addresses. Essentially, if a user inputs an .eth name in the AlphaWallet, it will show the wallet address, and vice versa using reverse resolution. Alpha...
Post a Comment
Read more

How Social Platform Chingari is Using Web 3.0 to Transform the Traditional Way We Use Social Media

The world is changing. This isn’t news to anyone, but sometimes it is nice to realize that—contrary to news headlines—not all the change is bad.  In fact, the last decade has seen so much innovation and so many improvements to technology that even 2015 seems like a different world.  Internet speeds, connecting with anyone globally (for free), and our ability to reach large groups of people without a middleman is nothing short of revolutionary. When it comes to technology evolution, this often happens with different iterations.  Once a system is mature, there’s a better idea of what we would like to change and improve.  We go back to the drawing board, target our creative minds at the issues, and create a new version that has evolved to better meet our needs.  The Internet has followed this model since its inception, evolving through three distinct stages.  We are only at the cusp of the third stage, called Web 3.0, with technologies such as blockchain and ...
Post a Comment
Read more

INX submits bid for Voyager Digital's assets

FTX US won a $1.4-billion bid to purchase Voyager’s assets in September, but with the firm filing for bankruptcy, the funds were once again up for grabs. Trading platform INX has submitted a bid for an undisclosed amount to purchase the assets of crypto brokerage firm Voyager Digital. In a Nov. 30 announcement, INX said it had sent a non-binding letter of intent for Voyager’s assets following the platform filing for bankruptcy in July. According to INX CEO Shy Datika, the bid was aimed at providing “credibility, technology, and unique regulatory positioning” for Voyager users seeking stability in a volatile market. Voyager’s original bankruptcy filing from the Southern District Court of New York suggested the firm could owe between $1 billion to $10 billion to more than 100,000 creditors amid a bear market and exposure to Three Arrows Capital. In September, FTX US won a $1.4-billion bid to purchase Voyager’s assets, but with FTX Group itself filing for bankruptcy in November, th...
Post a Comment
Read more