Altcoin
Aave And These 2 Altcoins Could Rise As Crypto Market Rebounds
Aave (AAVE), Decentraland (MANA), and The Graph (GRT) have emerged as three altcoins that could enjoy a price surge as the crypto market rebounds. Onchain analytics platform Santiment highlighted a crucial indicator proving these altcoins are worth watching. The market is also enjoying a strong rebound, which could serve as a bullish momentum for these coins.
Aave, MANA, And GRT Heavily Shorted Amid Crypto Market Recovery
Santiment’s analysis noted that Aave, Decentraland, and the Graph are among the top cryptos witnessing short ratios on Binance. The platform added that this implies that liquidations would lead to a massive price jump for them. These short traders could witness mass liquidations soon enough, considering how the outlook for these coins looks bullish with a crypto market recovery underway.
The market rally has been led by Bitcoin’s rebound above $58,000 following the release of the August CPI inflation data. Similarly, MANA and GRT have also recorded a strong recovery and have enjoyed significant price gains in the last 24 hours. Aave’s price has dropped below $150, having risen to as high as $155 this week. However, it is worth mentioning that the altcoin is one of the biggest gainers in the last seven days, with a price gain of over 10%.
Aave’s Bullish Fundamentals Support A Price Surge
Alongside the crypto market rebound, Aave’s bullish fundamentals also support a price surge for the altcoin. The Aave DAO has proposed to onboard Coinbase’s new Bitcoin wrapper, cbBTC, to the Aave v3 protocol. This move is expected to boost liquidity and engagement in the DeFi token’s ecosystem since Bitcoin holders will be able to access the protocol’s functionalities.
The decentralized protocol’s announcement that Ether.fi’s market has been deployed is also bullish for the Aave token and could propel a price surge. This move allows users to borrow stablecoins like USDC, pyUSD, and FRAX against Ether.fi’s liquid staking token, weETH. This follows Aave’s launch of a dedicated market for Lido’s liquidity staking token last month. The DeFi protocol also revealed that the v3 market for Ethena should launch soon enough. The proposal is currently in the final comment period.
The DeFi protocol partnered with Sky (formerly MakerDAO) to launch the Aave Sky Force. This initiative proposes integrating USDS and Savings USDS (sUSDS) on the v3 protocol. Depositors of the stablecoin will be able to earn yields and token rewards, thereby incentivizing them to use USDS instead of other stablecoins in the crypto market, like USDT and USDC.
Therefore, with such bullish fundamentals, Aave could enjoy a significant rally, especially if the market rally led by Bitcoin continues.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, Boluwatife is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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