Aave [AAVE] Continues to Lead in the Crypto Space Despite Doubts Surrounding the Revenue Models of Decentralized Finance (DeFi) Blue Chips

Aave's stablecoin surpassed $150 million. One important factor driving Aave's bullish momentum is its stablecoin, GHO. GHO has seen steady growth

Aave (CRYPTO: AAVE) continues to lead the crypto space despite questions surrounding the revenue models of Decentralized Finance (DeFi) blue chips. Some industry voices suggest a reevaluation of what qualifies as earnings and expenses in decentralized systems since these protocols are not traditional corporations.

Despite the doubts, Aave has shown strength in the market, especially when paired with stablecoins. However, its pairing with Bitcoin (CRYPTO: BTC) may face some challenges in the near term.

Aave’s Stablecoin Surpasses $150 Million, Boosting Bullish Momentum

One key factor driving Aave’s bullish momentum is its stablecoin, GHO. GHO has seen steady growth since its launch during a bear market, together with Curve’s stablecoin (CRV).

In early September 2024, GHO’s supply increased by more than 6.7%, and now it has reached a milestone of more than $150 million in outstanding supply.

Despite CRV having a larger supply than GHO, both stablecoins have potential for significant growth. As GHO continues to grow, it strengthens the broader Aave protocol and its potential for long-term growth.

Positive OI-Weighted Funding Rates

Furthermore, the OI-weighted funding rates reflect bullish sentiment. As of the latest data, the rate stood at 0.0058%, indicating that long positions are paying shorts.

This suggests a strong buying demand for Aave and aligns with its positive price outlook. The rising demand highlights that traders remain optimistic about Aave’s price moving higher in the near future.

Sentiment & Mindshare On The Rise

Finally, Aave’s social sentiment and mindshare are also bullish. Data from Kaito AI platform reveals record-high levels of positivity surrounding Aave.

With potential factors like Trump integration, buybacks, and the Sky partnership, Aave is poised for further growth. Aave’s overall outlook is strong, especially against stablecoins, signaling a likely rise in its price. It will continue to perform well in the DeFi space, with higher prices ahead.

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