Aave Price up by 2.35% – Time to Buy AAVE?
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- Aave is Revolutionising Decentralised Lending – Good Time to Buy AAVE?
- With the market’s downtrend, can AAVE rise above the market?
- Aave launched Lens Protocol in May
Aave is one of the shining stars of the decentralised finance (DeFi) market. The lending protocol was one of the biggest beneficiaries when DeFi first broke into the mainstream, and it has continued to lead most lending protocols in terms of total volume locked (TVL).
With the market still relatively bearish, AAVE is one of the coins that many investors will be looking towards. In this piece, we’ll consider if this might be a good time to buy AAVE or not.
Aave: Revolutionising Decentralised Lending – Good Time to Buy AAVE?
As explained earlier, Aave is a DeFi protocol that focuses primarily on the lending space. With Aave, lenders earn interest by depositing funds into liquidity pools. Borrowers will then be able to use their crypto holdings as collateral to take out loans.
The platform’s holders have the opportunity to participate in governance and vote on proposals. Users can also buy AAVE to enjoy discounts on fees on the Aave platform, thus increasing their earnings.
Aave is especially distinct in the lending space because it allows users to borrow and lend in over 20 coins. This diversity makes the platform great for diversified investors. And, users can easily buy AAVE and enjoy its massive liquidity for trading and staking.
Aave’s Push into Social Media
While Aave’s focus is on lending, the platform has also been making inroads into other spaces.
Two weeks ago, the lending platform launched Lens Protocol – a decentralised social media platform which looks to tackle the dominance of names like Twitter and Facebook.
Aave first introduced the Lens Protocol in February 2022. The software stack enables developers to build decentralised competitions to established social media platforms. Lens looks to decentralise the ownership and consumption of content and user accounts with the blockchain.
Instead of traditional social media platforms that need Email identification and usernames, Lens Protocol uses non-fungible tokens (NFTs) and crypto wallet addresses for monetisation and authentication. This model allows users to directly control their content and data.
AAVE Technical Analysis
With the market currently in a dip, investors who intend to invest in cryptocurrency would want to know if this is a good time to buy AAVE. Below, we share some insights on the crypto asset.
The current AAVE price is $109.60. This is a jump of 2.35% in the past 24 hours, and an even bigger surge of 16.25% in the past week. AAVE is riding a broader market rally, which has seen the entire industry jump by 1.25% in value over the past 24 hours.
Despite the price surge, AAVE is still reading below most of its moving average (MA) indicators. In fact, the asset’s 50-day MA of $109.30 is the only MA indicator that trails AAVE’s price.
AAVE’s moving average convergence divergence (MACD) is also negative, showing a sell signal.
It is worth noting that AAVE has a relative strength index (RSI) of 46.891. This shows that the asset remains underbought – a solid indicator for investors who want to buy cryptocurrency that this might be a good time to buy AAVE as demand for the coin will eventually rise when the market flips bullish.
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