The AAVE cryptocurrency witnessed a 19% increase over 24 hours, driven by its expansion onto the Aptos blockchain and new signals from the Fed.
AAVE Protocol Expansion
The AAVE protocol, a decentralized finance system, successfully launched on the Aptos blockchain, marking a significant technical milestone. The codebase was completely rewritten using the Move programming language, and the user interface was adapted for the Aptos virtual machine. The new launch included security audits, a vulnerability identification competition, and a $500,000 bug bounty program.
Fed Signals and Market Changes
The speech of Fed Chair Jerome Powell at the Jackson Hole Economic Policy Symposium had a significant impact on the market. He hinted at the possibility of interest rate cuts starting in September, which boosted risk assets, including cryptocurrencies. Expectations for a 0.25% rate cut rose to 83%.
Connection with World Liberty Financial
Analysts also point to AAVE's impact on World Liberty Financial. WLFI plans to launch its version of AAVE V3 on the Ethereum mainnet in October 2024. This collaboration could add $1.9 billion in value to AAVE, exceeding a third of its current $5 billion fully diluted valuation.
AAVE's 19% surge reflects successful technical expansion, favorable Fed signals, and potential value from connections with World Liberty Financial.
