Aave Surges 14% Amid Chainlink Integration Plans and DeFi Market Rally
The leading DeFi lending protocol Aave (AAVE) has seen its token price surge to $380, marking a 14% gain in the past 24 hours, as the protocol considers integrating Chainlink’s new oracle service to enhance user benefits.
The AAVE/USD rally comes as increased interest in DeFi lending products follows expectations of Federal Reserve rate cuts.
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Aave to Integrate Chainlink and Capture MEV Profits?
Aave is considering integrating Chainlink’s recently released Smart Value Recapture (SVR) oracle solution in a major step to increase user value. Introduced on December 23, the proposal seeks to reroute revenues from maximum extractable value (MEV) back to the users of the protocol, hence possibly capturing forty percent of MEV profits.
The project tackles a significant issue inside the Aave ecosystem around MEV extraction during liquidation events. Third-party liquidators currently receive a bonus for completing the liquidation when users’ investments are sold off because of diminishing collateral values. But by reordering transactions, blockchain builders have been making large profits, which reduces the rewards for protocol users.
AAVE/USD Technical Analysis Points to Strong Momentum
Market statistics shows significant increase throughout several timeframes:
- 30-day growth: +110%
- 90-day performance: +97.34%
- 180-day gains: +281.85%
With 572,728 AAVE tokens traded over the past 24 hours, trading volume has hit $187.99 million, signifying strong market activity and institutional interest. Technical indications point to ongoing positive momentum based on token trading close to $386, the 24-hour high.
Strong technical indicators back the price action; the MACD shows positive momentum and the Parabolic SAR points to a continuous uptrend. Still, the proximity to the upper Bollinger Band points to possible short-term overbounded situations.
Aave Price Outlook and Key Support Levels
While resistance falls around the $400 mark, key support levels were set at $341.95 and $298.12. Although the strong fundamentals and rising DeFi activity should sustain more upward, the price movement of the token points to a possible stabilization phase.
“The proposed Chainlink integration represents a significant step forward in addressing MEV-related challenges while enhancing value for protocol users,” the Aave governance proposal said. “This comes at a pivotal point when DeFi lending products are attracting fresh interest among a changing macroenvironment.”
Given private transactions already dominate Ethereum’s order flow based on recent research from Blocknative, the protocol’s evaluation of Chainlink’s SVR service fits a more general industry trend of shielding users against MEV misuse.
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