Aave surges by 25% as DeFi bulls return

Written by: Ali Raza
November 9, 2020
  • The DeFi sector is seeing a large recovery, as bulls appear to have returned to the market.
  • The biggest gainer right now seems to be Aave (AAVE), which surged by 25% in 24 hours.
  • Theories about what is coming next continue to pile up, with some even suggesting a massive crash in the futur

The DeFi sector saw rapid, continuous growth throughout the year, and especially during the summer of 2020. However, as the summer ended, it appeared as if the DeFi sector started losing its strength. Total Value Locked (TVL) lost several billion from its ATH, and some even suggested that the trend might be passing.

Fortunately, this is not the case, and DeFi is once again seeing a major surge in interest, with Aave (AAVE) being the biggest gainer right now.

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With DeFi bulls finally returning, Aave seems to be one of the most popular projects this time around. The token’s price has gone up by 25% in the last day alone, making it the top performer in the top 100 by market cap.

While the rest of the crypto industry has also seen considerable growth, even the top coins like BTC and ETH have only surged by around 5%.

Different theories about what to expect next

As for Aave, analysts believe that the token is only getting started, and that there is plenty of room left for it to keep growing.

With technical indicators showing that open interest in the DeFi market is growing, this might be bad news for anyone who has decided to go short recently. Traders might have to close their positions to prevent the loss of capital, or just keep waiting until they get short squeezed.

One theory of why this is happening suggests that the reason is institutional money that is entering the DeFi sector. Major traders and fund managers have noticed that institutions are purchasing cryptocurrency in large amounts.

Others believe that the DeFi market will soon head for the bottom, and that even an 80%-90% crash — which seemed unlikely in the past — might actually be a possibility.