AAVE, the governance token of DeFi platform Aave, registered a remarkable 30% upsurge over the past two days, forming a bullish divergence after the latest lows. While publishing this content, AAVE trades 10% high around the $151 mark, its market capitalization hovering around $2 billion.
The latest upside move by AAVE prices emerged after the protocol announced the Aave V3 launch on 16 March. The upgrade brings vital features to guarantee increased capital efficiency and enhanced decentralization. Some of the functionalities coming with the Version 3 protocol are:
- Top-notch efficiency to ensure users access higher borrowing power.
- Portals to enhance cross-chain transfers.
- Gas optimization to reduce charges by around 20-25% on all functions.
- Isolation mode for a safe listing of new products while safeguarding the protocol.
Moreover, V3 brings high-end functionalities for Layer2 networks like Polygon. The updates will further incentivize community usage with a well-organized and modular codebase. The announcement added that the community greenlit version 3 deployments on Fantom, Polygon, Arbitrum, Avalanche, Harmony, and Optimism. Moreover, the community will determine ETH mainnet deployment according to the maturity of the deployed markets.
Sandeep Nainwal, the Polygon co-founder, stated that V3 upgrade would accelerate decentralized finance (DeFi) growth due to its top-notch user experience. That means a massive milestone for one among the popular liquidity platforms in DeFi. Nainwal believes the update furthers its mission to ensure increased DeFi access globally.
AAVE Whale Accumulation
The latest price upswings n Aave also comes as the alternative token sees massive whale accumulation. On-chain data firm Santiment shows that one of the faces behind the alt’s rally is whales & sharks accumulating 70,000 AAVE within the previous two months, worth approximately $10.7 million.
Meanwhile, AAVE still trades at a 50% loss on the 3-month price chart. While publishing this article, AAVE traded at $154.52, exhibiting a massive bullish stance. That comes as the broad market struggles to recover from recent slumps. Though the upside journey appears challenging, analysts trust massive bullish actions will develop soon. Moreover, cryptocurrencies are in the spotlight amid urged inflation and geopolitical tension in Europe.