Crypto News

Aave Expands DeFi Presence By Launching V3 On ZKSync Era, Smart Money Accumulates $AAVE

$AAVE, a prominent player in the decentralized finance (DeFi) space with close to $12 billion in total value locked (TVL), has rolled out its V3 version on the Ethereum Layer 2 network, ZKSync Era.

This network leverages zero-knowledge technology to enhance both scalability and privacy, setting the stage for a new era in DeFi innovation.

The introduction of Aave V3 on ZKSync Era brings the platform to a Layer 2 solution that already commands over $850 million in TVL. This strategic move is poised to enhance liquidity and expand yield opportunities within ZKSync’s growing DeFi ecosystem.

By merging Aave’s dynamic money market capabilities with ZKSync’s robust privacy features, the platform aims to facilitate new institutional use cases and privacy-focused DeFi applications.

The Aave DAO has given the green light for the use of USDC, USDT, WETH, and wstETH in the initial launch on ZKSync Era. Moreover, any airdrops from the ZKSync ecosystem will be distributed to Aave users through liquidity mining, further incentivizing participation.

This deployment on ZKSync Era is anticipated to unlock significant opportunities for privacy-centric DeFi applications. Additionally, Aave’s social media protocol, Lens, is preparing to migrate from Polygon to ZKSync in Q4, signaling a broader strategic alignment with privacy-focused technologies.

$AAVE Price Hits New Highs With Over 30% Increase 

In market news, the price of $AAVE surged to $140 on August 21, marking a 30% increase over the past week. Despite this rise, buying pressure from Smart Dex Traders (SDTs) and whales remains robust, with their balances increasing over the past 24 hours.

https://twitter.com/iCryptoAI/status/1826509360006398457?t=rWi35FrrjkXivgwwmpLCKQ&s=19

Notably, a whale recently spent 4,000 $stETH (equivalent to $10.4 million) to acquire 77,270 $AAVE at $135 in a single day, as reported by Lookonchain.

However, analyst Ali Martinez warns that the TD Sequential indicator on the daily chart for $AAVE is flashing a sell signal, a pattern that previously led to an average 27% correction. This suggests that a potential price drop may be on the horizon for $AAVE.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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