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AAVE gains 13.4% in just 24 hours, eyes $200

By:
on Dec 18, 2021
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  • AAVE has made major double-digit gains during the past 24 hours.
  • With a 13.4% uptrend, the token is currently eyeing $200.
  • The gains come amidst a partnership between Aave and Balancer Labs to launch Boosted Pools.

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Decentralized finance (DeFi) tokens have been rallying during the past few days, and AAVE (AAVE/USD), one of the leading DeFi tokens, has not been left behind. The token has rallied by double-digit percentages during the past 24 hours.

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After the May market crash, AAVE suffered major losses, and even with the slight current gains, the altcoin is still around 70% below its ATH.

AAVE makes 13.4% gains

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AAVE’s price has rallied by over 13% during the past 24 hours. Following these gains, the token has attempted to reach $200, but it has been rejected at the $197 level. The tokens failure to clinch $200 despite the bullish gains could be because the overall market trend is still bearish.

To escape this bearish trend, AAVE needs to make a strong footing past $200. After that, the upper boundary lies at $202, after which the token could attract buyers that will fuel another rally.

Going by the trend made since the beginning of this month, AAVE has had a hard time maintaining its prices above $200. Losing support below this level has only created lower lows for the token. Since it has reached these levels before, it will most likely fail to hold $200 if buying pressure drops.

Additionally, the overall bearish trend could also contribute to additional losses for the DeFi token. Selling pressure could push it towards the lows of $150.

Balancer Labs and Aave partner for Boosted Pools

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The recent AAVE gains come as the Aave team announced its collaboration with Balancer Labs, an automated portfolio and liquidity provider. The partnership boosts capital efficiency with yields earned on tokens deposited into the AMM pools.

Much idle liquidity is usually available on AMM pools because traders only utilize a small fraction because of small trade sizes. Through the Boosted Pools initiative, the idle liquidity on AMM pools will be used to finance lending protocols and generate additional yields.

Boosted Pools will also bring efficiency to the process of wrapping and unwrapping. It is usually cost-intensive if it involves swaps because a trader will need to process the transaction using a relayer. However, the new Boosted Pools protocol will offer a solution by lowering costs through this initiative. The process of wrapping and unwrapping tokens during a swap will be left to the arbitrageurs, who will receive incentives for performing the action on behalf of a trader.

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