Is AAVE in a position to GHO-st to the top after a strong July

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On 7 July, lead­ing Decen­tral­ized Finance (DeFi) pro­to­col AAVE announced plans to launch the network’s over­col­lat­er­al­ized sta­ble­coin – GHO. This deci­sion was made sub­ject to the community’s approval.

Vot­ing by com­mu­ni­ty mem­bers on the pro­pos­al start­ed on 28 July and end­ed on 31 July. Accord­ing to the tal­lied votes, 99% of vot­ers sup­port­ed the cre­ation of the GHO sta­ble­coin, pledg­ing 501,000 AAVE tokens.

When AAVE announced its inten­tion to launch GHO, its native token, AAVE, ral­lied by 45%. This end­ed the token’s pro­longed bear­ish run. In fact, over the last 30 days, AAVE has appre­ci­at­ed sig­nif­i­cant­ly on the price charts. 

AAVE is ambitious 

H1 2022 was a 6‑month peri­od marked by a severe decline in the prices of many cryp­to-assets, includ­ing Bit­coin and Ethereum. Amidst the mar­ket blood­bath, the price of AAVE declined by 79%, with the alt end­ing Q2 around the $50-price level. 

July, how­ev­er, ush­ered in a bull­ish retrace­ment, one that saw many cryp­to-assets post­ing sig­nif­i­cant gains. Rid­ing on the impact of the gen­er­al bull­ish mar­ket and the news of its sta­ble­coin launch, AAVE record­ed a 75% uptick in just 31 days.

Still reel­ing under the impact of the pro­longed bear mar­ket, AAVE start­ed the month with an index price of $56.36. The alt­coin lat­er embarked on an upward ral­ly as the rest of the cryp­tocur­ren­cy mar­ket recov­ered, caus­ing it to end the trad­ing month at $98.38.

Ranked 41st on CoinGecko at press time, AAVE’s mar­ket cap­i­tal­iza­tion rose from $784 mil­lion to $1 bil­lion over the peri­od under review.

Fur­ther­more, with­in the 31-day peri­od, the crypto’s trad­ing vol­ume grew by over 300%. 

Source: San­ti­ment

The last 24 hours have been sig­nif­i­cant too. Data from Coin­Mar­ket­Cap revealed sig­nif­i­cant trad­ing activ­i­ty, with vol­ume up by 92% over the same. 

As AAVE’s price rose, the buy­ing pres­sure for the cryp­to also appre­ci­at­ed steadi­ly. Over that peri­od, the alt’s Mon­ey Flow Index (MFI) and Rel­a­tive Strength Index (RSI) touched highs of 77 and 63, respectively. 

The MFI and RSI marked their spots around the 59 and 50 lev­els, los­ing momen­tum at press time. 

Source: San­ti­ment

On-chain performance

Accord­ing to data from San­ti­ment, after climb­ing to a high of 1863 dai­ly active address­es on 18 July, the num­ber of unique address­es that trad­ed the alt declined grad­u­al­ly to just 1045 address­es by the end of the month. Over a 31-day win­dow, this met­ric grew by 35%. 

The index for new address­es cre­at­ed on the net­work also reg­is­tered a hike of 58% over the month. 

With the devel­op­ment of the GHO sta­ble­coin under­way, July has been a good month for AAVE. 

Source: San­ti­ment

Final­ly, in July, investors remained bull­ish as they held onto their AAVE. The same can be evi­denced by the down­ward slope of the Sup­ply on Exchanges met­ric over a 31-day period. 

Source: San­ti­ment

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