Aave Price Up by 19.5% – Time to Buy AAVE Coin?

Usually, during the holiday season, crypto markets do not offer much movement and opportunities to shift one’s gaze from one promising investment to another but this time, decentralized finance protocols have changed everything.

Over the past few weeks, AAVE, a successor of ETHLend, a DeFi protocol that offers the ability to lend and borrow crypto, has posted over 50% gains. The AAVE/USD and AAVE/USDT has been breaking out of the downtrend, leaving investors and traders equally surprised

As of now, AAVE is trading above $286.8 levels and its short-term RSI could imply a continuation of this uptrend for the remainder of the week.

AAVE Accelerates Leaving Behind Market Leaders on News of SEBA Bank Adoption

DeFi coins have been doing well so far even in a bearish market because they did not stop working. Analysts are predicting further growth DeFi projects like AAVE and some others in 2022.

ETHLend became Aave back in September 2018 without any other drastic changes in its features. It was founded by Stani Kulechov, an avid programmer and one of the early blockchain adopters. He transformed ETHLend into Aave to be able to lend more than just Ether. 

Lenders connected with Aaave obtain interest by depositing digital assets in liquidity pools. Borrowers use crypto as collateral to take out a loan (flash) using the same liquidity pool.

The recent spike in the prices of AAVE and all other DeFi translates to the consistent growth in the number of active users and the total value locked in the protocol.

The reason behind this bullish rally could be traced back to the news of SEBA, a swiss-based bank that focuses on digital assets, is looking to get whitelisted on Arc. Arc is an Aave developed institutional platform.

Arc was developed by the Aave team to present an opportunity for institutional entities to access DeFi yields without worrying about compliance issues concerning their regulatory necessities. Being 

A governance post released by the bank revealed the effort of SEBA bank whose objective is to widely access Aave’s DeFi lending platform post-whitelisting which has been impossible due to some regulatory restrictions.

Aave has several unique qualities that serve as its selling points in a market that is overpopulated by similar crypto lending projects.

NEAR Technical And Fundamental Analysis

Currently, Aave is moving above its 20-day moving average which is encouraging market participants to step up their entry levels and benefit from AAVE’s rally before it dies down typically. 

From a weekly perspective, AAVE is showing signs of being a beneficial Buy for this week as a total of 7 technical indicators is pointing towards a buy action. The summary of reliable indicators including oscillators and moving averages that traders trust prevalently are RSI (50.4), MACD (-20.3), EMA (256.5), and SMA (256.4)

Aave tokens follow the ERC-20 standard and are predominantly deflationary which means that if DeFi protocol suffers from a shortfall, staked tokens would be collaterals. According to CoinMarketCap, Aave is ranked as the 45th largest (by market capitalization) crypto with a 24hr trading volume of $510.6 million and a total market capitalization of $3.8 billion.

Crypto analysts have proper reasons to believe that with the recent SEBA Bank news, AAVE would be able to break records in the coming year.

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