There are strong indications that Aave [AAVE] is well-positioned to continue its impressive performance when compared to other digital currencies, as shown by the AAVE/BTC chart.
The AAVE/USDT pair has been consistently increasing, forming higher peaks and higher troughs. Recently, the weekly candle closed above the actual closing price of a consolidation range that has persisted for over 800 days.
If AAVE encounters a downturn in its price on the daily chart, the $108 support region will play a vital role.
As long as the price remains above this level, the resistance levels could potentially act as price objectives.
Maintaining a price above $150 could set the stage for an advance towards the $200 threshold by the completion of this cycle.
Nonetheless, it is highly likely that Aave will revisit the $108 price level before making a push towards the $200 target.
Funding Rates Shift to Positive
According to the Hyblock Capital tool, funding rates have turned positive, hinting at a growing sense of optimism among traders regarding Aave’s price trajectory.
Rising funding rates imply an increased desire for long positions, which can create upward momentum as the market anticipates a rise in prices.
Given the ongoing price action of AAVE/USDT, Aave seems poised for further upward movement.
However, significant downward movement might prompt a more cautious approach or even lead to cutting losses.
Market Performance Insights
The current market performance of Aave lends additional support to this optimistic outlook. Presently, over 55% of Aave holders are in profit at the prevailing price level.
This positive data suggests that these holders are less likely to offload their positions. Furthermore, a significant 80% of Aave’s supply is held by major stakeholders, reinforcing expectations of an upward trajectory.
About 77% of Aave holders have retained their tokens for over a year, indicating a strong commitment to the project.
Furthermore, transactions surpassing $100K have totaled more than $411 million, and there has been a 1.73% increase in Telegram membership.
Net exchange inflows over the past week have reached $14.94 million, adding to the potential for a price surge.
Rising Monthly Revenue
In terms of revenue, Aave has exceeded its previous cycle’s peak monthly revenue. The platform now generates $1 million in weekly revenue while issuing only $327K in AAVE incentives.
Aave stands out as one of the few protocols that have surpassed their prior revenue peaks, achieving $7.3 million in revenue in July 2024, a 9% increase compared to figures from October 2021.
Over the last two years, the platform has gained market share from its competitors, demonstrating strong product-market fit (PMF).
Moreover, the introduction of a proposal in July 2024, suggesting the implementation of a fee switch to redistribute some of the platform’s surplus revenue back to token holders, has further bolstered the token’s impressive price performance this year.