Driven by the overall bullish momentum in the crypto market, AAVE surged 34% in the past 24 hours, becoming the top gainer among the top 100 crypto assets. As of the time of writing, the trading price is $355.
This is the first time AAVE has broken the $350 mark since late August 2021. The four main reasons for AAVE's rise:
(1) After the release of the U.S. Consumer Price Index report last night, the cryptocurrency market immediately began to rise.
Data shows that the U.S. inflation rate rose 2.7% year-over-year in November, in line with expectations, up 0.1 percentage points from 2.6% in October. With the global cryptocurrency market cap growing by 4% to $3.82 trillion, Bitcoin has once again broken the $100,000 mark.
(2) A series of new developments have brought bullish sentiment, with Aave's total locked value in DeFi hovering around $22 billion.
According to crypto.news on Wednesday, Balancer announced a partnership with Aave to upgrade its decentralized exchange and automated portfolio management protocol to v3. The lending protocol will optimize the liquidity pools of Balancer v3, allowing users to maximize returns.
Additionally, after gaining community approval, Aave will launch on the Consensys-supported zk-rollup network Linea. This will enable Aave to scale and increase its transaction throughput at lower costs.
(3) Trump
Trump's DeFi project World Liberty Financial accumulated $1 million worth of AAVE tokens at an average price of $297.8 earlier today.
(4) Aave's whale accumulation has strengthened.
On December 9, net inflows of this asset reached 103,610 AAVE. The sudden spike in whale inflows often triggers fear of missing out among retail investors, potentially driving up prices.
