With overall market sentiment cooling, AAVE scores a win as it maintains high profitability even as the market declines slightly. According to Coin geckoThe token is up over 18% since last week, a sign that AAVE continues its bullish run on the market despite the latter grinding to a near stop.
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AAVE is looking to expand the reach of its operations with a proposal that will see Aave v3 enabled on zkSync, taking advantage of the latter’s rollup capabilities to keep transactions cheap for users.
Yes for activation of Aave v3 on zkSync
The activation of Aave v3 on zkSync is part of a long-term deployment of Aave v3 on the zkSync chain. It was first described on June 11, quote The scalability and efficiency of zkSync while “maintaining the security and decentralization of the Ethereum mainnet… Deposit and lending operations can greatly benefit from the lower transaction fees and increased throughput offered by zkSync.”
Once activated, Aave users can expect low transaction fees and fast completion, which helps improve the user experience while increasing the scalability of the network.
The voting process for the proposal is still ongoing, but the general consensus is currently one excellent “Yes” for the community with almost 47,000 votes in favor of activation. However, the proposal needs 320,000 votes to pass, giving users more time to weigh the pros and cons of the activation.
Secure levels provide opportunities for AAVE
At the time of writing, AAVE returned to pre-August levels at $110.43, opening the potential to reach $124 in the near term. But this also raises the question of whether the crypto has momentum to reach this price target.
The $105-$115 price range opens the door to higher levels once bullishness returns. With the market stagnant after a few days of bullish action, we could see the coin resting at this price level before a follow-on rally next week.
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However, this move depends on the likelihood of the market resuming its bull run. If market sentiment continues to encourage selling, we may see the token return to pre-$100 levels in the coming days, possibly to the bottom price of $93.
But current relative strength index (RSI) numbers suggest AAVE still has some room to make short-term gains. Together with improving the macroeconomic situation factors, we could see a new wave of capital inflows from novice retail investors trying out the market for a while.
Investors and traders should be positive in the coming days as the token stabilizes around its current price range to maintain momentum for the long term.
Featured image of Shrimpy Academy, chart from TradingView