- Aave reached its highest price in over a year at approximately $172, indicating a strong bull trend.
- The Total Value Locked (TVL) in the network surged to over $13 billion in 2024, nearing its 2021 levels, driven by increased activity.
As a seasoned crypto analyst with over a decade of experience in the digital asset market, I must admit that Aave’s recent surge has caught my attention. The price rally and the bullish signals from on-chain data indicate a robust trend that seems to be far from over.
Over the last several weeks, Aave [AAVE] has been surging, hitting its highest price in more than a year during the most recent trading period. On-chain analysis suggests a strong bullish momentum, reinforced by an uptick in Total Value Locked (TVL) transactions.
Aave sets a new annual price record
Over the course of a typical day, AAVE ended its previous trade around $172, representing nearly a 6% rise. This is the first time this price point has been seen since May 2022, making it a notable achievement in the journey of this cryptocurrency.
Lately, the price has reached a fresh level of resistance at $136, while there’s a more enduring support at approximately $128 suggested by its short-term moving average (represented by the yellow line).
For over a month now, the Relative Strength Index (RSI) has stayed above its neutral threshold, suggesting a prolonged bullish market phase that started in August. At present, the RSI is hovering near 70, moving into the overbought zone as a result of the recent price surge.
Market capitalization mirrors price trends
AAVE’s market capitalization has climbed in tandem with its price. According to CoinMarketCap, the market cap now exceeds $2.5 billion. This is a substantial increase from a year ago when it stood at around $882 million.
The biggest surge happened roughly around August, climbing up from about $1.3 billion to $2 billion.
Bullish signals from Aave’s on-chain data
Over the last several months, on-chain data suggests an uptick in AAVE hoarding. The number of individuals holding more than zero AAVE has grown from approximately 168,000 to around 170,000, then dipped back slightly to about 169,000.
This uptick indicates that more wallets have been purchasing the asset recently.
Further analysis shows heightened activity among AAVE sharks and whales. The number of wallets holding between 100 and 1,000 AAVE tokens increased by over 1,000.
Furthermore, there has been a growth of two additional wallets containing between 100,000 and 1 million tokens over the past three days, suggesting a notable increase in holdings by substantial investors.
TVL experiences significant growth
Based on findings from a Santiment report, an uptick in Aave’s activity can be attributed in part to a decline in trust towards Curve Finance, following a significant security incident it experienced in the summer of 2024.
Aave’s expansion into Layer 2 (L2) platforms has also contributed to the uptick in activity.
A study of Aave’s Total Value Locked on DefiLlama shows that it has grown significantly, moving towards its 2021 figures. Initially dipping down to about $7 billion in May 2022, it later surged back up to roughly $6.38 billion at its peak in 2023.
By Q1 2024, Total Value Locked (TVL) reached an impressive high of more than $13 billion. As I’m typing this, the TVL is approximately $12.4 billion.
Conclusion
Aave’s exceptional price increase and the optimistic trends indicated by blockchain data hint at a robust positive trend, implying it could be heading higher.
It seems clear that Aave is solidifying its status, as indicated by the escalating market value, swelling user base, and substantial surge in Total Value Locked. This trend may persist for some time.
Read More
- SQR PREDICTION. SQR cryptocurrency
- DOP PREDICTION. DOP cryptocurrency
- PUPS PREDICTION. PUPS cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- DOGS PREDICTION. DOGS cryptocurrency
- USD CHF PREDICTION
- NEON PREDICTION. NEON cryptocurrency
- TON PREDICTION. TON cryptocurrency
- HI PREDICTION. HI cryptocurrency
- EVA PREDICTION. EVA cryptocurrency
2024-09-25 02:15