1. Main Catalyst
The transfer of 354 million US dollars from Tether (USDT) to the Aave platform on June 23 sparked immediate speculation about yield farming or collateralized borrowing strategies. Such large flows typically precede protocol commitment (lending/borrowing), enhancing the utility of the AAVE platform and buying pressure. This aligns with the 24-hour trading volume of Aave increasing by 20.17% to reach 710 million dollars, confirming organic demand.
2. Market Dynamics
Institutional interest has risen following VMS Group's allocation of 10 million dollars to decentralized finance (DeFi) strategies through Re7 Capital (VMS Group). Aave's dominance in managing professional decentralized finance assets (96% of 4 billion dollars in institutional capital) reinforces its role as a cornerstone of liquidity. Meanwhile, BTC dominance has dropped to 64.41% (from 64.94% yesterday), indicating that the rotation of altcoins benefits the AAVE platform.
3. Technical Context
The price has regained the 50% Fibonacci level ($266.87) and is stabilizing above all major moving averages (10-day simple moving average: $257.52; 50-day simple moving average: $248.76). While the MACD indicator (-7.41) indicates short-term bearish momentum, the Relative Strength Index (RSI) (50.28) points to neutral conditions with room for upward movement. Immediate resistance is at the $272.50-$273 level, which experienced rejections driven by liquidation on June 14.