Driven by the overall bullish momentum in the crypto market, AAVE surged 34% in the past 24 hours, becoming the largest gainer among the top 100 cryptocurrencies. As of the time of writing, the trading price is $355.
This is AAVE's first breakthrough of the $350 mark since late August 2021. The four main reasons for AAVE's rise:
(1) Following the release of the US Consumer Price Index report last night, the cryptocurrency market immediately began to rise.
Data shows that the inflation rate in the US rose by 2.7% year-on-year in November, in line with expectations, an increase of 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 hovering around $22 billion.
According to a report from 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 Balancer v3's liquidity pools to maximize user returns.
Additionally, after gaining community approval, Aave will launch on the Consensys-supported zk-rollup network Linea. This will allow Aave to scale up and increase its transaction throughput with lower fees.
(3) Trump
Trump's DeFi project World Liberty Financial accumulated $1 million worth of AAVE tokens earlier today at an average price of $297.8.
(4) Aave's whale holdings have strengthened.
On December 9, the net inflow of the asset's major holders reached 103,610 AAVE. The sudden surge in whale inflows typically triggers fears of missed opportunities among retail investors, potentially driving prices higher.
