Aave (AAVE), Decentraland (MANA), and The Graph (GRT) have emerged as three altcoins that could enjoy a price rally as the cryptocurrency market rebounds. On-chain analytics platform Santiment has highlighted a crucial indicator proving that these altcoins are worth watching. The market is also seeing a strong rebound, which could serve as bullish momentum for these coins.
Aave, MANA and GRT heavily shorted amid cryptocurrency market recovery
Santiment’s analysis noted that Aave, Decentraland, and Graph are among the cryptos most affected by short ratios on Binance. The platform added that this implies that liquidations would lead to a massive price rally for them. These short traders could soon witness massive liquidations, considering that the outlook for these coins seems optimistic with a cryptocurrency market recovery underway.
The market rally was led by Bitcoin’s rebound above $58,000 after the release of the August CPI inflation data. Similarly, MANA and GRT also saw a strong recovery and saw significant price gains over the last 24 hours. Aave’s price fell below $150, after hitting $155 this week. However, it is worth mentioning that the altcoin is one of the biggest gainers over the last seven days, with a price increase of over 10%.
Aave’s Bullish Fundamentals Support Price Rise
Along with the cryptocurrency market rally, Aave’s bullish fundamentals are also supporting a price rally for the altcoin. The Aave DAO has proposed integrating Coinbase’s new Bitcoin wrapper, cbBTC, into the Aave v3 protocol. This move is expected to boost liquidity and engagement in the DeFi token’s ecosystem as Bitcoin holders will be able to access the protocol’s features.
The announcement of the decentralized protocol’s Ether.fi marketplace rollout is also bullish for the Aave token and could cause a price spike. The move allows users to borrow stablecoins like USDC, pyUSD, and FRAX against Ether.fi’s liquid staking token, weETH. This follows Aave’s launch of a dedicated marketplace for Lido’s liquidity staking token last month. The DeFi protocol also revealed that the v3 marketplace for Ethena is expected to launch fairly soon. The proposal is currently in the final comment period.
The DeFi protocol has partnered with Sky (formerly MakerDAO) to launch the Aave Sky Force. This initiative proposes to integrate USDS and USDS savings (sUSDS) on the v3 protocol. Depositors of the stablecoin will be able to earn yields and token rewards, thus incentivizing them to use USDS instead of other stablecoins in the cryptocurrency market, such as USDT and USDC.
Therefore, with such bullish fundamentals, Aave could benefit from a significant rally, especially if the Bitcoin-led market rally continues.
Boluwatife Adeyemi
Boluwatife Adeyemi is an experienced crypto news writer and editor who has covered topics that touch on DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making them easy to understand for crypto newbies. Outside of writing, Boluwatife is a basketball enthusiast and part-time degenerate.
Disclaimer: The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication does not assume any responsibility for your personal financial losses.
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