Despite uncertainties surrounding the revenue models of DeFi blue-chips, Aave [AAVE] remains at the forefront of the cryptocurrency sphere.
There have been suggestions in the industry to reconsider what constitutes earnings and expenses in decentralized systems, given that these protocols operate differently from traditional companies.
The AAVE/USDT pair recently breached a significant 800-day range, leading to an upward trend over the past two months, outperforming Bitcoin [BTC] in this period.
Since June 18th, AAVE/BTC has been establishing higher highs and higher lows; however, it encountered notable resistance around the 0.003 BTC level. This resistance, coupled with Bitcoin’s recent performance, has somewhat dampened the pair’s ascent.
While Aave is anticipated to sustain its upward trajectory due to robust fundamentals, its correlation with Bitcoin might face challenges in the short term.
Moreover, the Chaikin Money Flow (CMF) indicator indicates traders cashing out profits, resulting in outflows from the AAVE/BTC pair.
Nonetheless, the overall trajectory remains positive, particularly when paired against stablecoins, as Aave is projected to outshine both AAVE and Bitcoin in potential Q4 surges.
This scenario might mark the beginning of a possible reversal for Aave’s BTC pair; however, confirmation is still pending…
Surpassing the $150 Million Mark: Aave’s Stablecoin Milestone
A significant driver behind Aave’s bullish momentum is its stablecoin, GHO. Introduced during a bearish market, GHO has steadily expanded, alongside Curve’s stablecoin (CRV).
In early September 2024, GHO’s supply soared by over 6.7%, achieving a milestone of surpassing $150 million in total supply.
Despite CRV boasting a larger supply than GHO, both stablecoins exhibit potential for substantial growth.
As GHO continues its growth trajectory, it fortifies the broader Aave protocol, bolstering its long-term growth potential.
Optimistic OI-weighted Funding Rates
Additionally, the OI-weighted funding rates reflect bullish sentiment, with the current rate at 0.0058%, implying that long positions are outpaying shorts.
This trend underscores a robust buying interest in Aave, aligning with its positive price projections. The increasing demand signifies traders’ confidence in Aave’s potential to ascend in the near future.
Rising Sentiment and Mindshare
Furthermore, Aave’s social sentiment and mindshare are on an upward trajectory, with data from the Kaito AI platform displaying heightened levels of positivity surrounding Aave.
Aave is well-positioned for further growth, buoyed by potential factors like Trump integration, buybacks, and the Sky partnership.
Aave’s overall outlook remains bright, particularly against stablecoins, indicating a probable surge in its price and continued strong performance in the DeFi arena with an upward price trend ahead.