AAVE price rises 18%, why is it rising today?

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After a small drop to $273, Aave price rebounded to $379 with increasing buying pressure and a new collaboration with Chainlink. AAVE price rose for the second consecutive day with both bulls and bears dominating, rising 18% in the past 24 hours. Interestingly, the token was bullish for several days but fell as the cryptocurrency market crashed, disrupting its performance. However, this situation is changing today and there are multiple reasons behind this.

Why is AAVE price rising today?

AAVE has become one of the most profitable cryptocurrencies with its recent performance. However, it is also a leading DeFi protocol and is known for its services and collaborations. One of the proposed collaborations is with Chainlink's Smart Value Recovery (SVR), which focuses on rerouting revenue from the maximum extractable value (MEV) back to users.

The collaboration is in the preliminary stages of discussion as the AAVE ecosystem is facing issues related to MEV extraction, as described in the Aave proposal: Aave and its liquidation bonus works, but a "problem" has recently emerged that deserves some kind of optimization: MEV (maximum extractable value).

With Chainlink SVR, Aave can easily return 40% of MEV liquidation profits to users. In addition, it can play an important role in value distribution and management, ultimately benefiting ecosystem users. While this is still in progress, user sentiment has already begun to drive the token up.

Aave trading volume rose 62% to $1.44 million, and the price rose to $379.02, an increase of 18% in the past 24 hours. This surge officially pulled the token down, bringing the monthly increase to 107%. At this point, AAVE has reached its highest level in three years and is only 43% away from its all-time high of $666.86 set in 2021.

Interestingly, all DeFi tokens felt a similar boost, with investors paying a lot of attention, driving market cap up 5% and trading volume up 20%. Analysts believe this is just the beginning of AAVE's price rise, with more to come.

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