AAVE, the native token of the decentralized crypto lending platform Aave, surpassed $363 after surging by approximately 30% over the past day.<\/p>\n
This is the first time since 2021 that the asset has recorded a crucial milestone in a rally powered by a huge wave of coins moving back into circulation.<\/p>\n
As highlighted by Santiment in its latest analysis<\/a>, this surge is coupled with a significant drop in the \u201cMean Dollar Invested Age,\u201d a key indicator suggesting that major stakeholders are moving previously dormant tokens back into circulation. This influx of active coins plays an important role in driving bullish momentum for AAVE.<\/p>\n Additionally, the on-chain crypto analytic platform noted that active traders have experienced massive returns, with 30-day and 365-day gains of over 96% and 290%, respectively.<\/p>\n However, Santiment warns that the current rally\u2019s sustainability depends on whether large holders continue to circulate older tokens. Should whales decide to halt their activity, a retracement could occur. In such a scenario, AAVE\u2019s bullish phase risks cooling.<\/p>\n Adding another layer of insight, Spot On Chain reported<\/a> that Blockchain Capital, a prominent early investor in AAVE, deposited a significant amount of the token \u2013 16,964 \u2013 to FalconX after two years of inactivity. This stash is worth around $5.06 million.<\/p>\n It is important to note that Blockchain Capital acquired a total of 233,256 AAVE between August 2020 and March 2023, at an average price of $82.9. The venture capital firm still holds a substantial amount \u2013 216,292 AAVE, valued at almost $79 million.<\/p>\n This large deposit, coming after a prolonged period of inactivity, could potentially signal whales re-engaging with AAVE, aligning with Santiment\u2019s observation that the movement of older tokens is essential for sustaining the asset\u2019s bullish trend.<\/p>\n Several key developments are contributing to AAVE\u2019s recent price surge. First, decentralized exchange (DEX) Balancer launched<\/a> its V3 upgrade which introduces enhanced liquidity optimization, increased trading volume, and advanced tools for developers.<\/p>\n Aave has partnered with Balancer to integrate its permissionless automated market maker technology with the former\u2019s yield market infrastructure, creating 100% boosted pools. This collaboration is expected to bolster AAVE\u2019s liquidity and trading activity, further supporting its price growth.<\/p>\n Additionally, Aave\u2019s upcoming launch on Linea, a zk-rollup network backed by Consensys, is another key factor. With community approval<\/a>, the platform will leverage Linea\u2019s scalability and reduced transaction fees, allowing it to process more transactions efficiently and at a lower cost, thereby increasing adoption.<\/p>\n Lastly, the recent acquisition<\/a> of $1 million worth of AAVE by President-elect Donald Trump\u2019s DeFi project, World Liberty Financial, has added to the momentum. The project purchased AAVE tokens at an average price of $297.8, signaling strong institutional confidence in AAVE\u2019s prospects.<\/p>\n The post AAVE Surpasses $360: Bullish Momentum Driven by Influx of Dormant Tokens<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" AAVE, the native token of the decentralized crypto lending platform Aave, surpassed $363 after surging by approximately 30% over the past day. This is the first time since 2021 that the asset has recorded a crucial milestone in a rally powered by a huge wave of coins moving back into circulation. Major AAVE Stakeholders Circulate […]<\/p>\n","protected":false},"author":0,"featured_media":28048,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-28047","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/28047"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28047"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/28047\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/28048"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Catalysts Behind AAVE\u2019s Growth<\/h2>\n