AAVE, the native token on the eponymous DeFi platform, surged on Wednesday as liquidity mining through its latest version went live on Avalanche. The token also successfully tested a support level, and may be poised for more gains.
AAVE rose 10% in the last 24 hours, and was trading at an over one-week high of $187.30. The token outpaced an overnight recovery in most other cryptocurrencies.
Total value locked (TVL) on the platform also rose 0.2%. The protocol is the fifth-largest DeFi player by TVL, according to data from Defi Llama.
Given its prevalence in the DeFi space, the AAVE token is also consistently used by ETH whales to execute smart contracts. Data from Whalestats showed the token was the fourth-most used smart contract by ETH whales in the past 24 hours.
The token had rallied in March after the platform launched its version three update, which trimmed gas costs and introduced support for cross-chain transactions.
AAVE version 3 liquidity mining goes live on Avalanche
Ava Labs head of DeFi @luigidemeo said AAVE V3 liquidity mining is now live on the Avalanche blockchain. AAVE users will now be able to provide liquidity to DeFi protocols on Avalanche, and earn rewards for doing so.
The move comes after the AAVE community voted in favor of deploying on Avalanche in October. The deployment was covered by a $180 million DeFi incentive program launched by Avalanche earlier in 2021.
Currently, AAVE V3 is only accepting deposits in native USDC and USDT. The platform will also eventually phase out incentives for users on older versions of the protocol.
AAVE successfully tests support level
Crypto analyst @rektcapital noted that the token had successfully retested a key support level of around $187. The token now has a strong chance at reversing its recent losses.
This is the 1st time since 2021 that AAVE has been able to successfully retest the orange diagonal as support