AAVE surged an impressive 19% to reach $355 within just 24 hours, leading the top 40 cryptocurrencies in daily gains. This rapid ascent, captured by CoinDesk data, unfolded as investors reacted to two key developments: Aave’s strategic expansion into the Aptos blockchain and Federal Reserve Chair Jerome Powell’s recent dovish remarks.
Aave Ventures Beyond EVM with Aptos Expansion
On August 21, Aave Labs made waves by deploying Aave V3 on Aptos, marking its first foray into a non-EVM blockchain. This move is no mere footnote; it’s a significant pivot. Aptos, crafted in the Move language, required a complete overhaul of Aave’s codebase and user interface to integrate with the Aptos virtual machine. A robust security framework, including audits and a $500,000 bug bounty, underpinned this launch, supporting initial assets like APT, sUSDe, USDT, and USDC. The gradual increase in supply and borrow caps reflects a cautious yet ambitious growth strategy.
Stani Kulechov, Aave Labs’ founder and CEO, hailed the expansion as a milestone, underscoring a transformative shift after five years of EVM exclusivity. It seems the market agrees, as AAVE’s price trajectory suggests growing confidence in Aave’s adaptability and forward-thinking approach.
Powell’s Dovish Overtones Fuel Crypto Rally
Adding fuel to the fire, Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium provided an unexpected boost. In remarks that caught many by surprise, Powell indicated a shift in the balance of risks between inflation and employment, hinting at possible interest rate cuts in September. The market’s reaction was swift, with expectations for a quarter-point cut soaring from 75% to 83%. Such dovish signals often spark optimism in crypto circles, as lower interest rates tend to favor riskier assets. This sentiment is echoed in our recent coverage of Crypto Booms as Fed Goes Dovish: Here’s What It Means for Ethereum, Solana and Dogecoin.
The broader crypto market, already buoyant, found further impetus in Powell’s comments. AAVE’s sharp uptick is thus part of a larger narrative of optimism and repositioning, as investors recalibrate their strategies in light of potential monetary policy shifts.
The WLFI Rumor Mill: A Double-Edged Sword?
In the midst of AAVE’s surge, rumors swirled regarding its potential exposure to WLFI, the governance token associated with World Liberty Financial—a DeFi project linked to Donald Trump’s family. Allegedly, a proposal from October 2024 suggested AaveDAO might receive a tantalizing 7% of WLFI’s total token supply, alongside 20% of protocol fees from a proposed Aave V3 instance on Ethereum.
However, the veracity of these claims remains contested. A post on X by WU Blockchain dismissed the rumor as “fake news,” casting doubt on any such allocation. Yet, even the whisper of a $1.9 billion valuation stake in WLFI has captured investor imagination, hinting at the power of perception in this volatile market.
Navigating the AAVE Landscape
Technical analysis from CoinDesk Research highlights AAVE’s remarkable run, with the token leaping from $297.75 to $353.22 between August 22 and 23. Trading volumes surged, peaking at 340,907 units—far above the daily average. This suggests not just retail interest but also methodical institutional positioning, as investors respond to Aave’s evolving narrative. For insights into how macroeconomic events like Powell’s address can impact major cryptocurrencies, see our analysis of Bitcoin’s Jackson Hole Test: How Hard Could Powell’s Address Hit BTC Prices?.
However, the path forward for AAVE is not without its challenges. Questions linger about the sustainability of this rally, particularly if market conditions shift or if the WLFI rumors prove unfounded. Investors will be watching closely as September approaches, eager to see whether Powell’s dovish hints materialize into concrete policy changes.
In the ever-evolving world of cryptocurrencies, AAVE’s latest surge is a testament to the interplay of innovation, market sentiment, and speculative fervor. As always, in the realm of crypto, the only certainty is change—and plenty of it.
Source
This article is based on: AAVE Leads Top 40 Cryptocurrencies With 19% Surge in One Day — Here’s What Could Be Driving It
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
