On-chain data shows that "smart money" addresses are accumulating Aave, and Aave has become one of the mainstream currencies hoarded by "smart money" in the past 24 hours, suggesting strong interest from investors.
Well-known analyst World of Charts emphasized AAVE’s upside potential in a tweet, noting that AAVE is expected to break through an important level. He analyzed: “Aave has shown strength in recent months and is in a bullish pennant, while the entire altcoin market is in a correction and is still expected to test $180-200 in the next few days.”
Data shows that as of press time, AAVE has risen to $151.88, up nearly 9% in the past 24 hours.
Over 55% of Aave holders are in profit
IntoTheBlock data shows that currently, more than 55% of Aave holders are in profit at the current price level.
This is a positive indicator as these holders are unlikely to liquidate their positions. In addition, 80% of Aave supply is concentrated in the hands of large holders, which increases the expectation of an upward trend. A large portion (about 77%) of Aave holders have held their tokens for more than a year.
Aave net inflows to exchanges over the past seven days currently stand at $14.94 million, providing additional support for potential price increases.
Revenue diversification, expansion to weETH
In addition to the technical benefits, Aave's diversified revenue strategy also provides strong momentum for its development, including cooperation with projects such as Lido Finance, which helps to continuously increase its total locked value (TVL) and liquidity.
According to @tokenterminal and @Token_Logic, AAVE has consistently generated over $1 million in revenue per month, even during the bear market, and is now generating over $1 million in revenue per week.
The V3 version has multiple highlights in terms of functions
On September 9, Aave launched v3, which focuses on facilitating stablecoin lending against EtherFi’s Wrapped eETH (weETH, the largest Ethereum liquidity re-hypothecation protocol).
The protocol exclusively supports weETH as collateral and allows users to borrow Cricle’s USD Coin, Paypal’s PYUSD, and Frax’s FRAX stablecoins with a maximum loan-to-value ratio of 78%. Aave said the deployment was inspired by the frenetic demand for weETH on its main v3 platform.
Aave said on Twitter: “Currently, demand for borrowing and lending with weETH as collateral on Aave is so high that the cap is reached in minutes each week. This new deployment will provide users with enhanced functionality and better liquidity options, and provide liquidity through a separate market supporting EtherFi assets (specifically weETH).”
Influenced by this news, EtherFi's ETHFI token also rose by 2.5%, and the market value of WeETH rose to US$3.93 billion.
Earlier in late July, Lido launched a dedicated v3 deployment for Lido Finance's stETH and wstETH tokens. Aave noted that the Lido Alliance will provide liquidity incentives to users and reward builders who leverage the market's "new use cases." The deployment has a 90% lending cap (higher than the 78.5% of the regular stETH v3 market).
Aave’s Lido deployment has attracted $487.3 million in total locked value, making it the 46th-largest DeFi protocol, according to DeFi Llama.
More integrations are in the works, with a proposal to support Ethena’s yield-based USDe stablecoin currently entering its final governance comment period, according to the community forum.
Overall, Aave has performed well in terms of technology, fundamentals, and community governance. The optimism of analysts, the support of diversified income, and the active participation of the community have all provided strong impetus for Aave's future development.
