AAVE Excites Investors With 20% Gain As Developments Roll Out

Christian Encila

10 months ago

3 mins read

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With the major cryptocurrencies regaining lost ground against the bears, the market has returned to the $2 trillion market cap level. This led to huge gains in the altcoin market as the tokens rode the bullish wave. AAVE is one of the largest gainers this week with a whopping 20% uptick.

This is largely due to the return of bullish sentiment in the market and positive on-chain development which drove speculation for the token. With the upcoming release of the consumer price index (CPI) data today, an optimistic market awaits to jump on the bullish train.

AAVE DAO Eyes New Asset To Deploy On-Chain

Yesterday, September 10, Aave Chan Initiative (ACI) released a proposal to the AAVE community to include Coinbase’s cbBTC to Aave v3 on both the Base and the Ethereum Mainnet.

According to the proposal, Coinbase’s entry into the wrapped Bitcoin market brings a “unique value proposition to the Aave ecosystem.”

ACI also points out how users of Aave will benefit if the proposal passes. Another addition to the pool of assets Aave supports is better asset diversification for users, giving them solid and reliable options to put their money.

AAVE market cap currently at $2.2 billion. Chart: TradingView.com

Overall, the addition of cbBTC on Aave is viewed with much enthusiasm, however, some members of the community are hesitant with the current version of the proposal. Midapple expressed concerns about the proposals, specifically about the timing and implications the proposal has.

cbBTC was announced almost a month ago with no details about the mechanism behind the coin. With Coinbase’s centralized nature, the community will have some difficulty protecting the network against possible problems of early adoption like low liquidity.

In the case of Coinbase, which is a regulated entity in the United States, regulatory scrutiny will also affect cbBTC in the future and, by extension, the Aave network itself.

As of writing, no further revisions have been made to the proposal.

The Aave DAO just deployed a dedicated @ether_fi market on Aave.

Users will now be able borrow stablecoins like $USDC, $pyUSD, and $FRAX against their @ether_fi weETH liquid staking tokens. pic.twitter.com/s3Met9veuU

— Aave Labs (@aave) September 9, 2024

Another development on-chain is the deployment of a dedicated Ether.fi market on Aave, introducing liquid restaking on the platform.

According to the thread, the new addition is a glimpse at Aave v4 which has new features like dedicated liquidity instances and risk isolation.

Possible Correction To Occur Around ~$150

The token’s astonishing drive upward has been due to the market recovery from the early September slump. Currently, AAVE is right between the $147-$157 trading range which might provide the bulls with a strong support level.

However, the token’s bullish momentum is almost spent up, marked by the relative strength index (RSI) indicating that the bulls are somewhat exhausted.

Investors and traders should monitor the token’s movement in the coming days as a correction might push the token below $147 before settling above the latter.

Featured image from StormGain, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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