Binance Launches AAVEUSDC UNIUSDC Perpetual Contracts Prices Surge 6% 7%

Binance, the world's largest crypto exchange, has introduced USD-margined AAVEUSDC and UNIUSDC perpetual contracts, a development that is anticipated to enhance liquidity in the crypto market. Following this announcement, the prices of AAVE and Uniswap (UNI) surged by nearly 6% over the past 24 hours.

In an official statement released on June 16, Binance announced the launch of perpetual contracts for the DeFi protocols Aave and Uniswap. The exchange will offer up to 75x leverage on AAVE and UNI perpetuals in USDC pairs. Users can commence trading AAVEUSDC perpetual contracts from 8:30 UTC, with a tick size of 0.01. Similarly, UNIUSDC perpetual contract trading will begin at 8:45 UTC, with a tick size of 0.001. These perpetual contracts support a multi-asset mode, enabling users to trade across multiple margin assets such as Bitcoin, with applicable haircuts.

AAVE's price experienced a 6% increase in the past 24 hours and a 13% rise over the week, currently trading at $286. The 24-hour low and high for AAVE were $266.79 and $291.30, respectively. Analyst Livercoin noted that AAVE demonstrated strength and pullback during the recent market crash when other altcoins were plummeting.

UNI's price also saw a significant jump, increasing by more than 7% in the past 24 hours and extending its weekly gain to over 20%. The current trading price for UNI is $7.68, with a 24-hour low and high of $6.98 and $7.72, respectively. The launch of these perpetual contracts on Binance Futures is expected to attract more traders and investors, potentially driving up the prices of these DeFi tokens further. The capped funding rate and frequent settlement of funding fees are designed to provide a more stable trading environment, which could help mitigate some of the volatility associated with these tokens.

The price surge for AAVE and UNI following Binance's announcement indicates a positive market response. The launch of these perpetual contracts is expected to provide more opportunities for traders to speculate on the price movements of these tokens, which could further drive up their prices in the coming days and weeks. However, it is crucial to note that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly based on various factors. Investors should conduct their own research and exercise caution when trading in this market.

The introduction of these perpetual contracts underscores the growing popularity of DeFi tokens in the cryptocurrency market. As more traders and investors seek exposure to this emerging sector, the demand for these tokens is likely to continue rising. The capped funding rate and frequent settlement of funding fees on these contracts are designed to provide a more stable trading environment, which could attract more traders and investors to these tokens. Nonetheless, the cryptocurrency market remains highly volatile, and prices can fluctuate rapidly based on various factors. Investors should always do their own research and exercise caution when trading in this market.