- AAVE breakout from a two-year consolidation suggests a strong DeFi resurgence.
- Aave Labs’ partnership with BlackRock aims to enhance the GHO stablecoin’s efficiency.
AAVE, a key player in the DeFi space, is currently enjoying a major increase in market activity, reaching its highest trading level since May 2022. Arthur, the CIO of DeFiance Capital, stated that AAVE is breaking out of a two-year consolidation trend, implying that the token is on the cusp of reclaiming its all-time high (ATH).
He believes that this potential achievement might herald the start of a DeFi Renaissance, reinforcing AAVE’s position as a driving force in the decentralized finance ecosystem.
$AAVE is trading at the highest level since May 2022 and seems to be breaking out from a 2 year consolidation pattern.
Expect ATH reclaim to further solidify DeFi Renaissance. pic.twitter.com/pn29UsBMes
— Arthur (@Arthur_0x) September 22, 2024
AAVE Edge Against L2 Solutions: A Clear Trade Path
In response to Arthur’s remark, a user on platform X gave information that bolstered the token’s velocity. The user stated that AAVE’s performance against Layer 2 (L2) solutions has been one of the most clear trades in recent months.
They predicted that this tendency would continue, especially as blockspace providers must recruit decentralized apps (dApps) and their customers more successfully than the many blockspace providers competing to meet the same demand.
Previously, CNF has highlighted another analyst’s bullish forecast, who predicted AAVE might hit $200 during the upcoming bull run.
Aave Labs’ association with BlackRock has added to the favorable narrative, fueling anticipation for the coin. This collaboration aims to improve the stability and efficiency of Aave’s native stablecoin, GHO, potentially strengthening the platform’s position in the market.
Furthermore, as we previously highlighted, AAVE’s on-chain activity has increased significantly, with active addresses doubling in August compared to three months earlier. This increase in activity suggests a growing interest and participation in the AAVE ecosystem, implying that more users are interacting with its services and goods.
Aave’s latest venture, the “Skyward” service, is also gaining popularity. It intends to make it easier for DAO members to navigate proposals, improve the user experience, and potentially increase involvement in governance-related activities.
At the time of writing, the AAVE token was trading at around $172.86, up 7.72% over the last 24 hours and 24.29% over the last seven days. This increasing momentum has increased AAVE’s market cap to $2.5 billion.