With the overall sentiment in the market cooling down, AAVE scores a win as it maintains high profitability even when the market drops slightly. According to Gecko CoinThe token is up more than 18% since last week, a sign that AAVE continues to ride the market’s bullishness despite recent grinding almost to a stop.
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AAVE is looking to expand the scope of its operations with a proposal that seeks to activate Aave v3 on zkSync, leveraging the latter’s aggregation capabilities to keep transactions cheap for users.
Yes to enabling Aave v3 in 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. quoting zkSync’s scalability and efficiency while “maintaining the security and decentralization of the Ethereum mainnet… Deposit and lending activities can greatly benefit from the reduced transaction costs and increased throughput offered by zkSync.”
Once activated, Aave users can expect low transaction fees and fast finalization, helping to improve user experience while enhancing network scalability.
The voting process on the proposal is still ongoing, but the general consensus at this point is that earring “Yes” for the community with almost 47,000 votes in favor of activation. However, the proposal needs 320,000 votes to be approved, which gives more time to users to weigh the pros and cons of activation.
Secured levels open up opportunities for AAVE
At the time of writing, AAVE has returned to its pre-August level of $110.43, which opens up the possibility of reaching $124 in the near term. But this also raises the question of whether the cryptocurrency has the momentum to reach this target price.
The $105 to $115 price range opens the door for higher levels once optimism resumes. With the market stagnating after a couple of days of bullish action, we could see the coin rest at this price level before a follow-through rally takes place next week.
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However, this move depends on the likelihood of the market resuming its uptrend. If market sentiment continues to encourage selling, we could see the token return to pre-$100 levels in the coming days, possibly to the floor price of $93.
But the current Relative Strength Index (RSI) figures suggest that AAVE still has some room to make some short-term gains. Improving the macroeconomic situation factors, we could see another wave of capital inflow from budding retail investors who are testing the market for some time.
Investors and traders should be positive in the coming days as the token stabilizes around the current price range to maintain long-term momentum.
Featured image from Shrimpy Academy, chart from TradingView
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