With the overall sentiment available in the market cooling down, AAVE scores a win because it maintains high profitability at the same time as the market dips barely. In response to CoinGecko, the token is up over 18% since last week, an indication that AAVE is constant the market’s bullishness despite the latter grinding to a near stop.
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AAVE is trying to expand the reach of its operations with a proposal that sees to activate the Aave v3 on zkSync, leveraging the latter’s rollup capabilities to maintain transactions low-cost for users.
Yes To Aave v3 Activation On zkSync
Aave v3’s activation on zkSync is a component of a long-term deployment of Aave v3 on the zkSync chain. It was first outlined back on June eleventh, citing zkSync’s scalability and efficiency while “maintaining the safety and decentralization of the Ethereum mainnet… Deposit and borrowing activities can greatly profit from the reduced transaction costs and increased throughput offered by zkSync.”
Once activated, users of Aave can expect low transaction fees and fast finalization which helps improve user experience while enhancing the network’s scalability.
AAVE market cap currently at $1.6 billion. Chart: TradingView.com
The voting process for the proposal continues to be ongoing, but the overall consensus for the time being is an outstanding “Yes” for the community with nearly 47,000 votes in favor of activation. Nonetheless, the proposal needs 320,000 votes to pass, giving more time for users to weigh in the professionals and cons of the activation.
Secured Levels Open Opportunities For AAVE
As of writing, AAVE returned to its pre-August level at $110.43, opening the potential of reaching $124 within the short term. But this also opens the query of whether the crypto has momentum to succeed in this price goal.
The $105-$115 price range opens the door to higher levels once bullishness resumes. With the market stagnating after a few days of bullish motion, we would see the coin rest on this price level before a continuation rally occurs next week.
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Nonetheless, this movement is hinging on the probability that the market resumes its bull run. If the market sentiment continues to encourage selling, we would see the token return to pre-$100 levels in the approaching days, possibly to the $93 floor price.
But the present relative strength index (RSI) figures suggest that AAVE still has some wiggle room to squeeze some short-term gains. Together with improving macroeconomic aspects, we would see one other wave of capital inflow from budding retail investors trying the market out for a while.
Investors and traders ought to be positive throughout the coming days, because the token stabilizes around the present price range to retain momentum for the long run.
Featured image from Shrimpy Academy, chart from TradingView