Key Points:
- The AAVE token for DeFi lender Aave experienced a substantial rise, peaking at $330 on Monday, marking an 8% gain for the weekend amidst a general crypto surge.
- This surge coincides with Aave achieving a remarkable $50 billion in deposits, strengthening its status as the foremost DeFi lending platform.
- Analysts from 21Shares opine that the platform stands to gain from forthcoming U.S. regulations concerning cryptocurrencies and stablecoins.
AAVE price on July 14
The AAVE token, which is tied to Aave, reached its highest mark in several months during Monday’s trading. It surged to over $330 before retreating to around $316, reflecting an 8% increase over the weekend.
As the DeFi sector gains momentum amid a wider cryptocurrency rally, Bitcoin has achieved new heights, surpassing $120,000.
Aave remains a leading entity in DeFi lending, having recently surpassed $50 billion in deposits on its protocol.
The platform is also anticipated to be significantly impacted by advancing U.S. regulations for cryptocurrencies, experts assert. According to 21Shares,
“Aave is the largest lending platform in decentralized finance (DeFi), and it could be a major winner from the GENIUS Act.”
Currently, Aave represents 5% of the overall stablecoin supply, more than any other DeFi protocol. The platform issues its own overcollateralized stablecoin, GHO, which boasts a supply of $312 million.
Aave is also positioned to capitalize on increased institutional involvement and tokenization trends, planning to introduce its Horizon project, allowing institutions to utilize tokenized real-world assets as collateral to borrow stablecoins.
Technical Insights:
- CoinDesk’s market analysis suggests a bullish trend for AAVE.
- Trading volumes reached 159,078 units in the morning, indicating robust institutional buying activity.
- Support levels were identified at $304.25 to $305.63, which have become foundational for the ongoing rally.
- Resistance is noted around $327.40, suggesting caution as multiple attempts to breach this level have been observed.
- A psychological support level exists at $320.00, fostering consistent demand during consolidation.
