Three reasons why AAVE could rally in upcoming days
Aave price hovers around $340 on Tuesday after rallying 9% the previous day. The Ethereum Foundation allocated 50,000 ETH worth $165 million starting with Aave on Monday, marking an endorsement of the protocol. Aave’s recently launched v3.2’s Liquid eModes live on Arbitrum and Base, while its TVL in terms of ETH hit a new all-time high. Aave (AAVE) price hovers around $340 on Tuesday after rallying 9% the previous day. On Monday, the Ethereum Foundation allocated 50,000 ETH worth $165 million starting first with Aave, marking an endorsement of the protocol. Moreover, Aave’s recently launched v3.2’s Liquid eModes live on Arbitrum and Base, and its Total Value Locked (TVL) in terms of ETH hit a new all-time high, all hinting at a rally in the upcoming days. Aave receives funds worth $165 million from the Ethereum Foundation Aave announced that the Ethereum Foundation allocated 50,000 ETH worth $165 million from its treasury to begin participating in the DeFi ecosystem — starting with a test transaction on the Aave lending protocol on Monday, marking an endorsement of the protocol. The foundation has set up a new 3-of-5 multisig wallet and will use it to participate in the Decentralized Finance (DeFi) ecosystem. This investment could enhance Aave’s liquidity and further integrate it into the Ethereum ecosystem, signaling confidence in its long-term viability. At the same time, Aave recently launched v3.2’s Liquid eModes live on Arbitrum and Base. This platform introduces new DeFi primitives and allows users to leverage new collateral types like wstETH and open up unique DeFi use cases with reduced gas costs. This innovation could be seen as a game-changer, potentially attracting more users and increasing the protocol’s total value locked (TVL). Following the strong adoption of Lido @aave isolated markets on Ethereum, v3.2 Liquid eModes are now expanding to L2’s starting with @base and @arbitrum. Users can now leverage LRTs as collateral for borrowing wstETH opening up for unique DeFi use cases with reduced gas costs. pic.twitter.com/k04OI5kUFm — Lido (@LidoFinance) January 20, 2025 Moreover, crypto intelligence tracker DefiLlama posted on X on Tuesday that Aave’s TVL, in terms of ETH, has reached a new all-time high (ATH) of 6.53 million on Monday. This increase in TVL indicates growing activity and interest within the Aave ecosystem. It suggests that more users deposit or utilize assets within AAVE-based protocols, adding credence to the bullish outlook. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.