According to data provided by Santiment on-chain analysis feed, Aave decentralized finance protocol—which allows people to lend and borrow cryptocurrencies—spiked by 26% as investors and whales accumulated 70,000 tokens.
AAVE’s price movement was similar to the performance of digital assets like Luna and Rune, as they have recently rallied despite the tough conditions of the downtrend market. As data from Santiment suggests, the primary driver of the sudden growth was the accumulation of addresses that hold from $152,000 to $1.52 million.
The aforementioned addresses have added $10.7 million AAVE in the last two months, showing increased demand from retail investors.
AAVE technical analysis
According to various technical indicators like the Relative Strength Index and Exponential Moving Average, the asset is currently in the process of a trend shift as the price of AAVE broke through the 50-day moving average.
As for the RSI, which often reflects the current state of the asset, it moves in the “bullish” zone above the value of 50. But while moving close to 60, the indicator is still far from the “overbought” zone, which shows that AAVE still has some room for growth if buying power remains on the market.
Previously known as ETHLend, Aave allows users to lend and borrow cryptocurrencies and earn interest for depositing digital assets in liquidity pools. For providing liquidity to trading pairs and swaps, users receive rewards.
The popularity of the platform increased after the explosive growth of the DeFi industry, as more users redistributed their funds to more stable options like liquidity farming and staking.