AAVE, the native cryptocurrency of DeFi protocol Aave, has made a strong 30% gain in the last two days forming a bullish divergence from the recent lows. As of press time, AAVE is trading 10% up at a price of $151 and a market cap of $2 billion.
the recent run-up in the AAVE price after the platform declared the launch of Aave V3 Protocol on Wednesday, March 16. The Version 3 protocol brings some important features with respect to enhanced decentralization and increased capital efficiency. Some of the new features that come along with V3 are:
- High-efficiency mode that unlocks higher borrowing power for the users.
- Portals that facilitate cross-chain transactions.
- Gas optimization which reduces gas costs for all functions by 20-25%.
- Isolation mode that allows for secure listing of new assets while protecting the protocol.
Furthermore, version 3 also brings specific features for the Layer-2 networks such as Polygon. The upgraded version will also incentivize community usage using a modular and well-organized codebase. The announcement also adds:
The community greenlit V3 deployments across Polygon, Fantom, Avalanche, Arbitrum, Optimism, and Harmony. Ethereum Mainnet deployment will be determined by the community based on the maturity of the currently deployed markets.
Polygon co-founder Sandeep Nainwal said: “Aave V3 is poised to accelerate the growth of DeFi with its fully revamped user experience. This is a huge milestone for one of the most popular liquidity protocols in DeFi and furthers our mission to bring DeFi to the next hundreds of millions of people.”
AAVE Whale Accumulation
The recent price rally in AAVE also comes on the backdrop of strong whale accumulation. On-chain data provider Santiment notes that one of the key factors behind the AAVE price rally is the “fact that key sharks & whales have collectively accumulated 70,000 $AAVE the past 2 months, worth $10.7m”.
Courtesy: Santiment
AAVE is still trading on a 50% discount on a three-month chart.
