Anticipated increase in AAVE price: Potential 28% rally following achievement of $745 million staking landmark.
In the cryptocurrency world, AAVE, otherwise known as Aave, is on a roll! This token has been soaring like a rocket, reaching prices not seen since February and boasting an impressive 180% surge from its lowest point in April.
So, what's the secret sauce behind AAVE's success? Well, let's dive in!
The growth of AAVE has been nothing short of extraordinary. The total value locked on the network has skyrocketed, hitting a whopping $27.5 billion, up from a mere $16 billion in April. Furthermore, the total borrowed amount has risen significantly, going from $10 billion on April 13 to an impressive $17.5 billion today. This trend demonstrates that the protocol is pulling in a lot of interest.
Fees have also seen a substantial jump in recent months. In May alone, AAVE generated a whopping $40 million, up from $33 million in April. Revenue has even crossed a key resistance level at $210 million, reaching an impressive $211.7 million.
The rally in AAVE's price has also resulted in a surge in staked tokens. As of now, there are over $912 million worth of staked AAVE coins, up from the month's low of $350 million. Alongside this, futures open interest has exploded, reaching a record high of $745 million, up from the year-to-date low of $180 million. These figures indicate growing demand from investors.
Interestingly, the supply of AAVE on exchanges has dropped considerably, going from 3.8 million in December last year to 3.06 million today. The total supply in profit has also risen, hitting its highest level since January.
From a technical perspective, the AAVE token broke above the resistance level at $282.10, its highest swing on May 27. It has formed a golden cross pattern, with the 50-day and 200-day Exponential Moving Averages continuing to slope upward. Moreover, the Relative Strength Index and the Average Directional Index have both been on the rise.
Looking ahead, the bulls are targeting last year's high of $398.85, which is a 28% increase from the current level. However, a dip below the support at $282 would call the bullish outlook into question.
In summary, AAVE has been on a tear, fueled by growth in network size, increased fees, and surging demand from investors. The technical indicators point towards further growth in the near term, with bulls aiming for last year's high. But, a drop below the support at $282 could spell trouble for the bullish narrative. Stay tuned for more updates on this exciting journey!
- The cryptocurrency world has seen the Tron-based AAVE token, also known as Aave, skyrocket, boasting an 180% surge from its lowest point in April and reaching prices not seen since February.
- The growth of AAVE has led to a significant increase in the total value locked on the network, which has soared to $27.5 billion, up from $16 billion in April.
- AAVE's total borrowed amount has risen dramatically, going from $10 billion on April 13 to $17.5 billion today, indicating a lot of interest in the protocol.
- In May alone, AAVE generated a substantial $40 million in fees, up from $33 million in April and surpassing a key resistance level at $210 million.
- The demand for staking AAVE tokens has also risen, with over $912 million worth of staked AAVE coins, up from the month's low of $350 million, and futures open interest reaching a record high of $745 million.
