Aave Price Surges 76% in One Week, DeFi Tokens to Move Higher as Institutional Adoption Increases
Sarah Tran Nov 09, 2020 05:56
Aave (AAVE), one of the leading cryptocurrencies in the DeFi sector has seen its price reversal surge up to 76 percent in the past week.
Aave (AAVE), one of the leading cryptocurrencies in the decentralized finance (DeFi) sector has seen its price reversal surge up to 76 percent in the past week. Among the top 50 cryptocurrencies by market capitalization, Aave has outperformed every other digital asset.
In the past 24 hours, has gained 15 percent in the past 24 hours, trading at $53.18 at press time. The world’s largest cryptocurrency by market capitalization, has gained 3 percent in the past 24 hours, and 12 percent in the past week. Ethereum has also seen a similar trend, gaining 3.3 percent in the past 24 hours, and 14 percent in the past week.
Some analysts believe that the Aave token, (AAVE) could continue on its bullish trend as the futures markets for the cryptocurrency indicates that the token could surge rapidly. An analyst commented, while pointing to the below chart:
“$AAVE short liquidatons about to kick in. Pump it $55.”
Institutional capital in the DeFi market
With the strong surge in AAVE’s price and the uptick of total value locked in the DeFi industry, many have speculated that institutional capital has been slowly being deployed in the market.
While the Bitcoin price has seen a substantial increase in the past few weeks, the DeFi market has also risen. The total value locked in the DeFi industry is $12.43 billion at press time, according to DeFi Pulse.
An analyst at Messari, Mason Nystrom, recently noted that Jump Trading, a Wall Street giant has recently been holding more than $75 million in cryptocurrencies.
Although the company has already been quite active in the crypto industry, Jump Trading is now holding a few digital assets in the DeFi industry, including Compound (COMP), Keep Network (KEEP), HXRO, Numeraire (NMR), Orchid Protocol (OXT), and MakerDAO (MKR). The company has invested the most heavily in Serum.
Has the DeFi industry bottomed yet?
Crypto analyst Qiao Wang recently explained that the bottom of the DeFi market is still yet to come. He said:
“I constantly update my views and unfortunately it looks like there’s going to be more pain in DeFi. Originally I thought we won’t see a 80-90% crash which is typical of alts because of the level of sophistication of DeFi investors but that thesis is being invalidated.”
Image source: Shutterstock
