Aave's native token surged 20% to $262 in the last 24 hours, and over 90% in the past 30 days, outperforming the broader crypto market which rose only 0.2% in the same period. This rally coincides with a key procedural vote in Congress on the GENIUS Act, which aims to provide regulatory clarity for stablecoins. Aave plays a significant role in the stablecoin economy, allowing users to lend, borrow, and earn yield on stablecoins.
The GENIUS Act, if enacted, could allow banks and other companies to issue their own stablecoins, potentially leading to wider institutional adoption. The protocol's Total Value Locked reached an all-time high of over $25 billion this month, surpassing market leaders like Lido and EigenLayer. This indicates growing interest in the Aave ecosystem.
World Liberty Financial, backed by Donald Trump, acquired over 3,300 AAVE tokens in December as part of a $5 million investment in DeFi assets. AaveDAO also receives 7% of WLFI's circulating token supply and a 20% share of protocol fees, further integrating the protocol into U.S. political crypto initiatives. Ethereum rose 4%, Chainlink gained 3.2%, and Solana added 2.6%.
This article is based on our author's analysis of materials taken from CoinGecko and DeFi Llama.