AAVE's Aptos Expansion Drives 3.34% Price Jump, 174,840 Active Addresses

AAVE, a prominent decentralized finance (DeFi) protocol, has recently garnered significant attention due to its proposed expansion onto the Aptos chain. This move, currently under governance voting, marks a pivotal moment for AAVE as it seeks to debut on its first non-Ethereum-compatible chain. Aptos, known for its high-speed transaction processing capabilities, boasts speeds of 150,000 transactions per second (TPS), far surpassing Ethereum’s 12–15 TPS. This upgrade is anticipated to unlock faster execution, drive user growth, and attract deeper liquidity, potentially benefiting AAVE's ecosystem.

Market sentiment has turned optimistic as liquidity improves and the key protocol upgrade gains traction. AAVE's price has seen a 3.34% jump over the past 24 hours, reversing its 18.69% decline over the past month. This price movement reflects a growing accumulation of AAVE by buyers, signaling a potential market rally. The total value locked (TVL) in AAVE has also been on the rise, moving from $26.574 billion to $28.075 billion, an approximate $1.5 billion increase. This rise in TVL indicates growing conviction among investors, as more funds are deposited into AAVE's smart contracts.

The liquidity injection into AAVE may be tied to rising activity. Active AAVE addresses have crossed 174,840, pointing to fresh retail participation. Additionally, investors have purchased 7,910 AAVE, worth over $1 million, in the last 24 hours alone. A negative Exchange Netflow, which implies that these AAVE tokens were purchased and moved into private wallets for long-term holding, further supports the possibility of a market surge. Derivative traders are also aligned with the majority of bullish investors, as the OI-Weighted Funding Rate remains positive, indicating that most AAVE contracts are from long traders anticipating a price increase.

According to analysts' forecasts, this high-speed expansion could spark a 30% rally in AAVE's price. The bullish sentiment following the announcement of the Aptos integration has fueled expectations of a sustained rally. However, it is important to note that these forecasts are based on current market conditions and may not necessarily materialize. The actual impact of the Aptos integration on AAVE's price remains to be seen, and investors should exercise caution when making investment decisions based on these forecasts.