AAVE secures daily top gainer spot amid renewed buying interest 

Aave joined more than 9% during the last day in the middle of community -changing media around its potential launch on Sonic Blockchain and an increase in the accumulation of whales.

Ghost (AAvenue) rebounded at an intraday summit of $ 274.91 on February 5, winning 9.6% in the last 24 hours while recovering from previous losses during a crisis on the market level which briefly pushed the Token at around $ 253.44.

Altcoin’s market capitalization was based on more than $ 4.1 billion from press time, with a circulating offer of 15,060,878 tokens, while its daily negotiation volume oscillated more than $ 853 million. Despite recent earnings, Aave remains 58% lower than its summit of $ 661.69, reached in May 2021.

There are three main reasons why Aave has rallied today.

First of all, the Aave community recently completed a request for comments Aave proposal To bring Aave V3 to Sonic, an EVM compatible blockchain network. With almost 100% approval, the V3 could soon be broadcast on Sonic after a final vote, whose members of the community expect to improve the adoption and the income potential of Aave.

Second, the decentralized loan protocol managed to treat $ 210 million in liquidations After the Flash crash of February 3, which erased around $ 2.2 billion in the cryptography market. The event has marked the largest liquidation event for a day for the protocol since the accident of August 5.

The periods of extreme volatility often lead to poor accumulation of debts, as a combination of multiple liquidation requests, sharp price reductions and low demand can overcome the ability of a protocol to effectively treat liquidations. However, AAV not only sailed on this stress test without incurring further debt of debts, but also managed to reduce its debt of poor existence by 2.7%.

This demonstration of resilience and financial stability by the project has probably renewed the interests of investors, which thus stimulates the request for Aave.

Third, the activity of whales around Aave increased in last week, as before reported by crypto.News. More recent data De Lookonchain shows that an intelligent whale recently bought 102,259 AAVE tokens, spending about $ 27.5 million in marked ETH.

Meanwhile, according to analyst Ali Martinez, whales collected 62 million people between January 29 and February 1 (see below.)

In addition, World Liberty Financial Initiative, a decentralized financial platform associated with President Donald Trump, has actively invested in Aave in recent months.

These large -scale purchases of whales also encourage retail investors to follow suit. According to Coinglass Data, more than $ 363 million in Aave left centralized exchanges in last week.

AAVE ACTION PRICE

On the 4 -hour / USDT graph, the MacD lines pointed upwards, indicating that the upward trend remains strong, which could feed the additional gains for Altcoin.

The Chaikin Money Flow index has also shown a positive reading also pointing up, suggesting that a new offer of money or capital supports the current rally. In addition, the relative force index has recently rebounded from a level of occurrence and rose up.

Consequently, Aave could continue its rally to retain $ 375, its highest point in January, which is 38% above the current price.

Such a scenario can take place, because the project could probably face short pressure on its long -term market. The open interest in its term market has increased by 10% to 240 million dollars, while its weighted funding rate has become negative at -0.0124%.

As such, if Aave continues to increase due to the purchase pressure following the recent accumulation of whales, this could lead to short holders facing liquidation, forcing them to buy their positions at higher prices . This, in turn, could trigger a liquidation cascade, which increases the value of the asset more.

Disclosure: This article does not represent investment advice. The content and equipment presented on this page are only for educational purposes.