Aave's Price Surges as DeFi Capital Flows Return

Aave (AAVE) continues its impressive rally after closing above its 50-day Exponential Moving Average (EMA) and surging over 10% in a single day. The altcoin's price has surpassed $81, fueled by improving on-chain metrics, including the return of USDT deposits to the protocol.

According to Aave's founder Stani Kulechov, posted on X, the Ethereum V3 Core market has seen a significant increase in USDT deposits since mid-June. This influx of liquidity bolsters the lending ecosystem and increases borrowing capacity, providing yield opportunities for users.

Rising Open Interest (OI) and positive funding rates in the derivatives market further support a bullish outlook for Aave's native token. OI has been continuously rising since mid-June, indicating new or additional money entering the market and new buying, suggesting a trend of increasing demand for AAVE.