Aave, a number one crypto-lending protocol on the Ethereum community, has skilled vital development in its complete worth locked (TVL), rising by $2.26 billion since Monday. In response to DeFiLlama information, this surge introduced Aave’s TVL to $13.33 billion, which marks the very best degree since Could 2022.
The rise is essentially attributed to the constructive market sentiment surrounding the potential approval of spot Ethereum exchange-traded funds (ETFs) by the US Securities and Change Fee (SEC).
Anticipation of Spot Ethereum ETFs Fuels Aave’s Renewed Progress
The AAVE token has additionally seen a notable enhance, rising 13% over the previous week. On Monday, its value jumped from $86.29 to $99.51 earlier than barely correcting to $96.19. This upward pattern highlights the renewed investor confidence in Aave and the broader decentralized finance (DeFi) sector.
Aave’s TVL. Supply: DeFiLlama
Learn extra: What Is Aave?
Aave just isn’t the one DeFi protocol benefiting from the rising optimism round spot Ethereum ETFs. Uniswap, a distinguished decentralized change (DEX) within the Ethereum ecosystem, has seen its TVL enhance by $837 million in the identical interval. Uniswap’s native token, UNI, additionally surged from $7.65 on Monday to $9.69 at the moment.
Different property have additionally felt the ripple results of this optimism. The Pepe (PEPE) meme coin reached an all-time excessive of $0.00001454, with a market capitalization of $5.81 billion after a 32.3% enhance over the past seven days.
Equally, Ethereum Traditional (ETC), a fork of Ethereum, noticed its value rise by 19.5%, now buying and selling at $32.24. This displays the widespread constructive sentiment available in the market.
A latest report from CryptoQuant affords deeper insights into the present market dynamics. It highlights a number of components contributing to Ethereum’s value enhance.
CryptoQuant analysts famous that merchants aggressively open lengthy positions within the perpetual futures market, resulting in a brief squeeze and a cascade of brief liquidations. Moreover, vital spot shopping for from Ethereum everlasting holders has put upward strain on costs.
The report additionally said a considerable quantity of Ethereum is being moved to exchanges, signaling potential value volatility within the coming days. This exercise is often related to excessive change flows, suggesting that the market might expertise sharp actions. Regardless of the optimism, analysts at CryptoQuant advise warning.
Learn extra: Aave (AAVE) Value Prediction 2024/2025/2030
“If the approval course of will get delayed or the ETF purposes are denied, ETH might expertise a major value correction,” they stated.
