AAVE secures daily top gainer spot amid renewed buying interest
The post AAVE secures daily top gainer spot amid renewed buying interest appeared on BitcoinEthereumNews.com.
AAVE rallied over 9% over the past day amid community hype around its potential launch on Sonic blockchain and an uptick in whale accumulation. Aave (AAVE) rebounded to an intraday high of $274.91 on Feb. 5, gaining 9.6% over the past 24 hours while recovering from earlier losses during a market-wide slump that briefly pushed the token down to around $253.44. The altcoin’s market cap was seated at over $4.1 billion as of press time, with a circulating supply of 15,060,878 tokens, while its daily trading volume hovered over $853 million. Despite the recent gains, AAVE remains 58% lower than its all-time high of $661.69, reached in May 2021. There are three main reasons why AAVE rallied today. First, the Aave community recently completed an Aave Request for Comment proposal to bring AAVE V3 to Sonic, an EVM-compatible blockchain network. With nearly 100% approval, V3 may soon go live on Sonic following a final vote, which community members expect will enhance Aave’s adoption and revenue potential. Second, the decentralized lending protocol managed to process $210 million in liquidations following the Feb. 3 flash crash, which wiped out approximately $2.2 billion from the crypto market. The event marked the largest single-day liquidation event for the protocol since the Aug. 5 crash. Periods of extreme volatility often lead to bad debt accumulation, as a combination of multiple liquidation requests, sharp price drops, and low demand can overwhelm a protocol’s ability to process liquidations efficiently. However, Aave not only navigated this stress test without incurring additional bad debt but also managed to reduce its existing bad debt by 2.7%. This demonstration of resilience and financial stability by the project has likely renewed investor interest, thereby driving demand for AAVE. Third, whale activity around AAVE has increased over the past week, as previously reported…
Filed under: News - @ February 5, 2025 11:21 am