Aave gains 150% from the recent lows as the fundamentals of the asset remained strong, so in our latest altcoin news, we are looking into the price analysis some more.
AAve became one of the best-performing assets in the past few days. from its lows set late last week, the coin gained about 150% and rallied from $27 to $67 as of the time of writing. Aave now is the best-performing asset in the top 100 by market cap and the coin trades up by 25% in the past 24hours alone outpacing the prices of Uniswap’s UNI, YFI, SNX, and other ethereum-based coins. Aave is benefiting from the influx of capital that is seen in the Defi space which has been triggered by the strong fundamental trends. Aave is up by 25% in the past day alone as the buying volume picked up.
Aave gains 150% from the recent lows and analysts say that the elements which contributed to the rally were the large number of short liquidations which resulted in rapid price action to the upside. Before the rally, there were many traders that were shorting and led Defi tokens like Aave. Due to the fast rally in the summer, most believed that the coin could see a violent retracement which eventually happened in September and October.
While there are many that made profits with the positions, the shorting ended. A large influx of spot buying activity forced many investors out of their short-postins which led to the rapid rallies as we saw the prices of Aave, YFI, and other coins in the deFi space. Behind the rally in the price of the coin are strong fundamental trends. While the platform’s token is still below its all-time high, there are some aspects of the coin’s broader ecosystem which are stronger than ever. According to Defi pulse, the value locked in Aave remains above $1 billion with $1.19 billion worth of crypto locked in the protocol that can be used or added by any ETH user.
The rally for the coin came shortly after the platform completed a transition from the LEND token to the new AAVE one. The transition only improved the ecosystem and made it even more decentralized.
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