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Aave V3 Ready For Solana After This Crucial Vote Passed

The Aave community has overwhelmingly approved a proposal that will set the ball rolling for deploying Aave V3 on Solana, a smart contracts platform. The motion, put forward by the Neon Foundation and the Aave Chan Initiative (ACI), passed with a majority vote of 83% based on results posted on January 21.

Aave TEMP CHECK voting | Source: Snapshot.org

Solana Fast Rising, DeFi Ecosystem Active

Solana has been rapidly expanding, with its native currency, SOL, emerging as one of the top performers in 2023. To put it in perspective, SOL prices exploded from about $10 in 2023 to around $125 by the end of the year. 

Solana price trending downward on the daily chart | Source: SOLUSDT on Binance, TradingView

This surge saw SOL reverse losses of November 2022 while concurrently catalyzing events on the blockchain, spurring various activities, including the expansion of decentralized finance (DeFi), non-fungible token (NFT), and meme coin activities. 

Related Reading: Bitcoin Price Turns Red, Why BTC Could Tumble Below $40K

On the other hand, Aave has been expanding to multiple Ethereum Virtual Machine (EVM) compatible networks, emerging as one of the leading decentralized finance (DeFi) protocols. According to on-chain data from DeFiLlama on January 22, Aave manages over $6.9 billion worth of assets across ten chains. A big chunk, over 90%, comprises assets on Ethereum. Aave v3 has a total value locked (TVL) of $4.9 billion.

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Aave V3 On Solana, What It Means

The TEMP CHECK proposers are keen on Aave v3 deploying on Solana, considering the blockchain’s rapid growth in the past year. They observe that the blockchain’s DeFi TVL and broad user base would likely benefit the lending and borrowing protocol, cementing its position as a market leader. 

If Aave is deployed on Solana, the protocol will access the deep liquidity on the blockchain. At the same time, users will access Aave services more conveniently. Subsequently, the proposers reiterated this move will cement Aave’s position as the leading liquidity market on-chain. Moreover, it will likely open up new opportunities for collaboration between the Aave, Solana, and other Neon EVM communities. 

Neon EVM is a cross-chain bridge for users to transfer assets between Ethereum and other blockchains. Through this bridge, Aave v3 will go live on Solana without any major reconfiguration of the protocol’s codebase. Among the tokens that will be initially supported is SOL. Users will be free to borrow USDC, a stablecoin.

The passing of the TEMP CHECK also reflects Aave’s ambition to expand across multiple blockchains beyond EVM networks. So far, Aave has been deployed on various platforms, including layer-2s like Arbitrum and Base, Avalanche, and Ethereum’s sidechain, Polygon.

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Aave V2 Operational, Will Bulls Break The 15-Month Resistance At $110?

All Aave v2 markets are now operational, the team behind the non-custodial liquidity protocol announced in a November 13 post on X. This a day after v3 markets were unfrozen following the approval from the community.

Aave is a platform where users can supply liquidity in exchange for rewards while borrowers are free to take loans while paying interest in a trustless environment.

Aave v2 Markets Unfrozen, Security Is “Non-Negotiable”

In the post, Aave said the security of the decentralized finance (DeFi) protocol remains a “priority and is non-negotiable for the community.”

On November 4, Aave said they received a report “of an issue on a certain feature.” After being validated, the protocol decided to take a step and pause the operation of their v2 markets on Ethereum. At the same time, some v2 markets on Avalanche were frozen. Even so, the v2 markets on Polygon were unaffected. 

Aave also froze operations on Aave v3 on Polygon, Arbitrum, and OP Mainnet. However, v3 markets on Ethereum, Base, and Metis were unaffected. 

While Aave v2 and v3 markets were frozen, the protocol clarified that users supplying or borrowing affected assets could still withdraw and repay their positions but couldn’t supply or borrow more. With those markets unfrozen, they can now continue as it was before.

Will Bulls Ease Past $110?

The resumption of services, looking at the AAVE candlestick arrangements in the daily chart, has not impacted prices. However, the token is trading at around 2023 highs and remains within a bullish formation as optimistic traders expect the uptrend to continue.

Aave price trending upwards on the daily chart | Source: AAVEUSDT on Binance, TradingView

Despite the uptrend, bulls have failed to break above the $110 resistance level. As it is, this reaction level marks August 2022 highs and has not been breached in the past 15 months. 

The token has more than doubled at spot rates, rising from $50, a critical support level marking January and June 2023 lows. For trend continuation, there must be a solid breakout above $110 and the $60 range from where prices have been moving horizontally in a multi-month accumulation.

Still, it is unclear how the token will react in the days ahead and whether there will be more upside momentum as liquidity increases as activity resumes on Aave v2 markets. 

Aave TVL | Source: DeFiLlama

According to DeFiLlama data, Aave is one of the largest DeFi protocols, with over $6 billion in total value locked (TVL). Most of these assets are locked in Ethereum, where over $5.1 billion of tokens are under management.

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Aave Protocol Halts Certain Market Operations Due To Bug Report

Decentralized finance (DeFi) platform Aave has suspended operations in a number of markets after receiving a problem report on a certain function of the protocol.

DeFi Protocol Discovers Vulnerability; Is User Funds At Risk?

On Saturday, November 4, decentralized lending protocol Aave announced – via a post on X (formerly Twitter) that it has paused the Aave V2 Ethereum market and suspended certain assets on Avalanche. In addition, the protocol has frozen specific assets on Aave V3 on Polygon, Arbitrum, and Optimism. 

According to the protocol’s announcement, these actions serve as a temporary precautionary measure following a problem report on a specific feature. 

Furthermore, Aave said in the post that the Aave V3 markets on Ethereum, Base, and Metis and the V2 markets on Polygon and Avalanche are unaffected. Meanwhile, no funds on any of the markets were at risk, according to DeFi lending protocol.

While Aave did not specify what the issue is or the feature that caused the problem, the protocol said it would release a detailed explanation once there is a full resolution. The statement read:

A governance proposal to restore the normal operation of the protocols will be submitted shortly. A detailed postmortem will be released once the issue is fully resolved.

Aave further clarified that users supplying or borrowing from a frozen assets pool can still withdraw and repay positions. However, these users can’t supply or borrow more funds from the frozen assets pool until the issue is resolved. The protocol added: 

On paused assets, no action can be done until unpaused.

AAVE Price Remains Steady Despite Protocol Vulnerability

There is no evidence to suggest that the problem has had any impact on the value of the protocol’s native token, AAVE. As of this writing, the token is valued at $90.15, reflecting a negligible 0.9% price dip in the past 24 hours.

Nevertheless, the token is outperforming on a bigger timeframe. Over the past week, AAVE’s price has swelled by more than 10%, touching the $100 mark – for the first time since February – at some point during the week.

Although the price of AAVE  has been moving mostly sideways in the past few days, a resolution of the current issue might trigger renewed momentum for the token. Hence, there is a chance that the cryptocurrency might revisit $100 again, especially considering the optimistic climate of the crypto market.

Aave

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Aave Price Action: Bearish Pull Forces AAVE To Resist Drop To $74 Level

AAVE has been showing hints of recovery today which is quite the opposite of its figures a few hours ago.

  • AAVE shows signs of recovery as price climbs by 7.35%
  • Coin generally bearish but the bulls are now attempting to take over
  • AAVE breaches $77.53 level

This could be due to the general crypto market recovering too as of press time. Will this be for long term?

The coin has been generally bearish as it resist falling into the $74 level. Key support is now spotted at the $73.65 level and resistance is present at $77. 52.

Evidently, AAVE is seen to be moving downhill earlier as it failed miserably in breaching the $77.53 level. At this point AAVE is treading the bearish route for short term.

Judging by the 1-day price analysis, it is moving downwards as triggered by the uptick in selling pressure. If the selling pressure subsides, then AAVE price could shoot way up which is happening right now.

Chart: TradingView.com
AAVE Price Climbs By 7.35%

According to CoinMarketCap, the coin’s price has skyrocketed by 7.35% or trading at $79.64 as of press time which means it has successfully breached the $77.53 level that it has been trying to do so for the past couple of days.

The Bollinger Bands Indicator higher band is now seen at the $78.63 mark which is now the key resistance for AAVE while the lower band is seen at the $73.83 mark.

More so, RSI has previously manifested a decline to 40 but has shown recovery and is now looking more balanced.

The 4-hour price chart reveals that the bears have been dominant for many hours but the bulls are now taking over.

Previously, the sharp decline of AAVE has caused a devaluation of price down to the $73.22 level which has been a good sign to the sellers.

Price Likely To Build Momentum

AAVE price is seen to be generally bearish due to its sideways consolidation but is seeing an uptick now and making some room for the bulls.

The price has plummeted by $74.34 yesterday but it has now found its mojo and on its way to making more gains. Momentum will likely build up in the coming days.

At this point, AAVE is expected to continue trading in its current range for the next 24 hours.

However, the scenario with AAVE/USD still looks like a tug-of-war and anything can happen at this point as either the bears or the bulls can get exhausted and propel the coin to move either way in the coming days.

AAVE total market cap at $1.12 billion on the daily chart | Source: TradingView.com

Featured image from AMBCrypto, Chart: TradingView.com

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AAVE Slowly Climbs To $109, Resistance At $113 Looms

AAVE shows that the price is steadily rising as the coin’s bullish streak makes noise in the market.

  • AAVE price is raging bullish today with its steady climb to $109 resistance level
  • The coin faces hurdle at $113.50
  • AAVE/USD pair support is spotted at $97.91

The AAVE/USD price saw a boost of 12.02% compared to the figures yesterday as the market spikes to $109.99 from yesterday’s $105.

AAVE Resistance Spotted At $113.50

According to CoinMarketCap, AAVE has plunged by 0.18% as it trades at $109.87 as of this writing. The token’s price faces resistance at $113.50 with the bulls trying to breach the target level. On the flip side, the market has spotted some support at $97.91 as the bulls were able to restore the token’s price up after it dropped below this range.

AAVE is currently trading right above the $109 zone, as the bulls managed to push the price up. The 24-hour TVL for the coin sits at $508 million with a current market cap of $1.53 billion.

AAVE’s daily chart shows a dramatic and robust upswing seen in the past 24 hours. In fact, the market was able to reach a high of $113.50 before it faced some gigantic selling pressure that caused the price to plunge. However, the bulls were able to push the price shooting above the $97.91 market, and it now trades near its ATH of $109.99.

AAVE Tries To Retest Above Resistance

The market is largely optimistic and is set to skyrocket in the near term as the bulls are able to push the price up. MACD looks extremely bullish with it line overshooting the signal like. RSI also shows its bullish steak as it trades at 62.50.

With the bulls pushing the price up after every dip, AAVE price shows that the market is swerving for an uptrend. It’s all looking positive for Aave with the coin trading within the range of $109.99 to $113.50, with the bulls not able to move past $113.50. Currently, the market has locked in some strong foothold at $97.91, which acts as support line.

AAVE price is looking positive with bulls pushing the price higher despite the massive selling pressure. More so, the market is hoping to retest at the key resistance of $113.50 but the bulls will have to regroup to enable a breach above that level.

AAVE total market cap at $1.5 billion on the daily chart | Source: TradingView.com

Featured image from Yahoo Finance, Chart from TradingView.com