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AAVE Soars 95%: Tight Supply Fuels Surprising Rally!

Crypto
Last updated: May 10, 2025 2:13 pm
Crypto
Published May 10, 2025
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AAVE Soars 95%: Tight Supply Fuels Surprising Rally!

AAVE Surges to New heights as Investors Accumulate More Tokens

AAVE’s price soared on Saturday, hitting its highest point since March 6. The token reached $221.91, marking a 95% increase from its April 7 low. this surge pushed AAVE’s market cap above $3.3 billion.

According to CoinGlass, investors are increasingly buying AAVE tokens. This trend intensified after Ethereum (ETH) broke through the $2,400 resistance level, a milestone not seen since February. Exchange balances of AAVE fell to 4.76 million,down from 4.87 million a week ago. This drop indicates that holders are less likely to sell, a positive sign for the coin.

AAVE’s dominance in the decentralized finance (DeFi) sector is also growing. DeFi Llama data reveals that the total value locked in AAVE rose by 35% in the past 30 days, reaching $24.2 billion. This makes AAVE larger than Lido (LDO), which holds $21.6 billion in assets.

AAVE’s profitability is on the rise too. Year-to-date fees have climbed to $224 million. AAVE acts as a decentralized ‘bank,’ allowing users to earn interest on idle assets through lending operations.

Technical analysis shows a bullish trend. The AAVE price chart indicates a bottom at $113.50 on April 7, followed by a rebound above the 50-day Exponential Moving Average. The Relative Strength Index is at 75, and the MACD has crossed the zero line. If the price holds above $170, it could surge 83% to $400.

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