The price of AAVE declined over 15% in four days, but buyers rushed to the market, leading to a quick price recovery.
Price Dynamics of AAVE
Over four days, AAVE's price fell from a peak of $283 to an intraday low of $240. However, the price rebounded above $254, although it has since slightly retraced to $251.
Impact of New Collateral Types on Aave
On May 30, Aave added support for three new collateral types including eUSDe, July PT-USDe, and August PT-eUSDe, resulting in an initial market size of around $700 million. The launch of the first two markets from Pendle had successful supply caps of $100 million and $40 million that were quickly filled.
Forecasts and Future of AAVE
The current AAVE price could be eyeing a move of over 12% towards the $283 level, while a further breakout could see it reach the psychological mark of $300. Aave's platform support and growing interest in crypto assets could positively affect the token's long-term growth.
Despite recent declines, the growing interest in DeFi and new tokens may contribute to AAVE's strengthening market position.
