AAVE, the native token of Aave, has recently surpassed $360, reaching a milestone not seen since 2021. The token experienced a surge of approximately 30% in a single day, driven by previously dormant tokens returning to circulation. This resurgence indicates a broader bullish momentum in the market as major stakeholders re-engage with their holdings.
Active traders have reported gains of over 96% in the past 30 days and 290% over the last year. The drop in the "Mean Dollar Invested Age" suggests that large holders are actively circulating older tokens, injecting liquidity and trading activity into the market. The sustainability of this rally depends on the continued activity of these large holders.
Institutional interest is also growing, with Blockchain Capital depositing a significant amount of AAVE into FalconX after two years of inactivity. The recent acquisition of $1 million worth of AAVE by World Liberty Financial further fuels market enthusiasm.
The launch of Balancer's V3 upgrade and Aave's partnership with Balancer are expected to increase trading volume and liquidity. Aave's upcoming launch on Linea, a zk-rollup network, will improve scalability and reduce transaction fees.
The interplay between dormant token circulation, institutional interest, and technological advancements will be crucial in determining AAVE's trajectory in the decentralized finance space.