No other meaning
Boss Yi, you might as well learn a bit more
Or hire a few kids with finance majors
To avoid a liquidation of 5 billion dollars
Just be aware that it’s still the money after leverage
The actual margin is much less than 5 billion
Ethereum could potentially rise to 4000 dollars
But the motivation for the rise is definitely not to avoid this 5 billion liquidation
Saying that BlackRock's purchases are stronger than the theory of a 5 billion liquidation
Let me calculate how much actual net inflow is needed to reach 4000
The price increase of a coin does not require an equal amount of funds to flood in, because limited market depth, the existence of leverage, and thin order books can amplify price elasticity
1/ Historical estimation
Based on experiences from the past few years:
In a bull market, a net inflow of 1 dollar into crypto assets can potentially drive the market cap up by 10-25 dollars
For ETH, a highly liquid coin, a conservative amplification factor is between 1:10 to 1:15
2/ Current ETH circulating market cap
Assuming the total supply of ETH is about 120 million coins, the price from:
$2800 → Total market cap = 2800 * 120M = 336 billion dollars
$4000 → Total market cap = 4000 * 120M = 480 billion dollars
Incremental market cap = 144 billion dollars
3/ Estimating required funds based on inflow multiples
If we take:
Fund amplification factor = 15 times
Actual fund inflow ≈ Incremental market cap ÷ Factor ≈ 144 billion ÷ 15 ≈ 9.6 billion dollars
To rise from ETH $2800 to $4000, it requires about 6 to 12 billion dollars of actual net inflow (depending on market structure and sentiment)
A reasonable median value: ≈ 9 to 10 billion dollars of net buying
To avoid a 5 billion liquidation, while the margin is far below 5 billion
Spending 10 billion real dollars
This is a bit much, right?
To echo
Ethereum could potentially rise to 4000 dollars
But the motivation for the rise is definitely not to avoid this 5 billion liquidation
Saying that BlackRock's purchases are stronger than the theory of a 5 billion liquidation.
JackYi
The simplest reason for a bullish outlook on ETH is that there are $1.3 billion in short positions on CME, $1 billion in short positions on AAVE, and at least $3 billion across various exchanges, totaling $5 billion in ETH short positions that will be forced to cover. A short squeeze could push ETH to $3000, $3500, or even $4000, which is the core reason we are buying 100,000 ETH options.
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Augura_
#37 • Aave
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$AAVE $𝟯𝟭𝟬.𝟴𝟱 🟢🟢 +7.0%
#MC $𝟰.𝟳𝗕
#FDV $𝟱.𝟬𝗕 1.1 MC
#TVL $𝟮𝟲.𝟰𝗕 5.6 MC 🔴 -0.3%
#VOL $𝟵𝟳𝟮.𝟱𝗠 0.2 MC
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加密韋馱｜Crypto V🇹🇭
Boss, you shouted this angle earlier, aren't you sleepy?
Who believes the fundamentals
JackYi
The simplest reason for a bullish outlook on ETH is that there are $1.3 billion in short positions on CME, $1 billion in short positions on AAVE, and at least $3 billion across various exchanges, totaling $5 billion in ETH short positions that will be forced to cover. A short squeeze could push ETH to $3000, $3500, or even $4000, which is the core reason we are buying 100,000 ETH options.
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George
I agree with @CryptoPoseidonn here, $AAVE looking solid.
Reclaiming $270 was key, range highs likely next into $400+
Let's get it!
Poseidon
$AAVE has a clearly strong trend against USD and also appears to have bottomed against BTC and ETH.
$AAVE is a must have in your portfolio for the upcoming Ethereum season.
$1,000 is the initial target.
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米奇🐭 reposted
JackYi
The simplest reason for a bullish outlook on ETH is that there are $1.3 billion in short positions on CME, $1 billion in short positions on AAVE, and at least $3 billion across various exchanges, totaling $5 billion in ETH short positions that will be forced to cover. A short squeeze could push ETH to $3000, $3500, or even $4000, which is the core reason we are buying 100,000 ETH options.
The current price of AAVE is $307.97. Over the last 24 hours, AAVE has increased by +5.89%. It currently has a circulating supply of 15,157,858 AAVE and a maximum supply of 16,000,000 AAVE, giving it a fully diluted market cap of $4.67B. At present, AAVE holds the 21 position in market cap rankings. The AAVE/USD price is updated in real-time.
The rating provided is an aggregated rating collected by OKX from the sources provided and is for informational purpose only. OKX does not guarantee the quality or accuracy of the ratings. It is not intended to provide (i) investment advice or recommendation; (ii) an offer or solicitation to buy, sell or hold digital assets; or (iii) financial, accounting, legal or tax advice. Digital assets, including stablecoins and NFTs, involve a high degree of risk, can fluctuate greatly, and can even become worthless. The price and performance of the digital assets are not guaranteed and may change without notice. Your digital assets are not covered by insurance against potential losses. Historical returns are not indicative of future returns. OKX does not guarantee any return, repayment of principal or interest. OKX does not provide investment or asset recommendations. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition. Please consult your legal/ tax/ investment professional for questions about your specific circumstances.
By using the third-party website ("TPW"), you accept that any use of the TPW will be subject to and governed by the terms of the TPW. Unless expressly stated in writing, OKX and its affiliates ("OKX") are not in any way associated with the owner or operator of the TPW. You agree that OKX is not responsible or liable for any loss, damage and any other consequences arising from your use of the TPW. Please be aware that using a TPW may result in a loss or diminution of your assets.
The AAVE team introduced the AAVE Protocol to the market in 2020, marking a significant milestone as it enabled users to leverage actual cash on the platform. Before this, the idea of borrowing and lending cryptocurrencies appeared unconventional. Since its inception, the AAVE protocol has revolutionized the decentralized finance (DeFi) ecosystem. AAVE is one of the most renowned lending protocols within the DeFi space. But what precisely is the AAVE protocol, and what factors contributed to its widespread acclaim?
What is AAVE?
AAVE, formerly known as ETHLend, is a prominent decentralized money market protocol that facilitates the lending and borrowing of crypto assets. The protocol operates through a native token called AAVE, which serves as a governance token, empowering the community to shape the protocol's trajectory collectively.
Within the AAVE protocol, lenders can generate income by supplying liquidity to the market, while borrowers can collateralize their crypto assets to secure loans from the available liquidity pools. AAVE supports decentralized and non-custodial lending, allowing users to earn interest on their holdings and borrow various crypto assets. The protocol operates fully decentralized and incorporates a governance mechanism that relies on the AAVE token.
The AAVE Team
AAVE was initially founded in 2017 by Stani Kulechov under the name ETHLend. Kulechov's original vision was to create a platform that connected borrowers with lenders in a peer-to-peer (P2P) fashion. However, faced with various challenges, Kulechov shifted the approach to a peer-to-contract model, ultimately transforming ETHLend into AAVE.
How does AAVE work?
AAVE allows users to deposit their assets into a liquidity pool, earning interest in proportion to their contributions. Individuals can obtain a loan by providing collateral as an asset on the borrowing side. If the loan cannot be repaid, the protocol can liquidate the collateral to cover the outstanding debt.
Collateralized loans
Collateralized loans AAVE offers overcollateralized loans, requiring borrowers to deposit crypto assets worth more than the amount they wish to borrow. This ensures lenders are protected from potential loan defaults and allows the AAVE protocol to liquidate the collateral if its value significantly declines.
Flash loans
The AAVE protocol also enables flash loans, allowing users to borrow any amount of money from the protocol's capital without providing collateral. However, it is essential to note that the loan must be repaid almost immediately within the same transaction block.
AAVE’s native token: AAVE
When you deposit funds into AAVE, you receive an equivalent amount of tokens. These tokens are crucial to the network as they allow you to earn interest through lending activities.
Tokenomics
The AAVE ecosystem consists of a total of 16 million AAVE tokens, with 14.393 million tokens currently in circulation. It's important to note that 3 million tokens from the total supply are allocated to the founding team. These tokens play a significant role in supporting the development and growth of the AAVE protocol.
AAVE use cases
AAVE has multiple use cases within the DeFi protocol. Firstly, it is widely used for staking and governance, allowing token holders to participate actively in the decision-making process and contribute to the development of the protocol.
Additionally, AAVE plays a crucial role in facilitating lending and borrowing services offered by the protocol. Users can borrow funds against their collateral, participate in collateral swaps, and even utilize flash loans for quick and efficient transactions.
AAVE Distribution
The distribution of AAVE tokens is as follows:
30 percent of the tokens were set aside for the core development of the DeFi protocol.
20 percent of the tokens were allocated for developing a user-friendly interface, ensuring a smooth user experience.
20 percent of the tokens were allocated for management and legal costs of maintaining the protocol.
20 percent of the tokens were used for promotions and marketing activities to increase awareness and adoption.
10 percent of the tokens are reserved for covering overhead costs related to the operation of the AAVE ecosystem.
What the future holds for AAVE
The future looks promising for AAVE and its token holders, as the protocol has set ambitious goals for its ecosystem. With a clear vision and strategic plans, AAVE is poised to maintain its position as a leading protocol for borrowing and lending in the crypto industry.
However, it is important to note that the rapidly evolving crypto ecosystem regularly introduces new innovations and competition. The AAVE team must stay agile and prepared to navigate the challenges posed by emerging projects to sustain their success.
Number of posts mentioning a token in the last 24h. This can help gauge the level of interest surrounding this token.
Contributors
Number of individuals posting about a token in the last 24h. A higher number of contributors can suggest improved token performance.
Interactions
Sum of socially-driven online engagement in the last 24h, such as likes, comments, and reposts. High engagement levels can indicate strong interest in a token.
Sentiment
Percentage score reflecting post sentiment in the last 24h. A high percentage score correlates with positive sentiment and can indicate improved market performance.
Volume rank
Volume refers to post volume in the last 24h. A higher volume ranking reflects a token’s favored position relative to other tokens.
In the last 24 hours, there have been 6.1K new posts about AAVE, driven by 3.7K contributors, and total online engagement reached 2.5M social interactions. The sentiment score for AAVE currently stands at 88%. Compared to all cryptocurrencies, post volume for AAVE currently ranks at 757. Keep an eye on changes to social metrics as they can be key indicators of the influence and reach of AAVE.
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Posts
6,068
Contributors
3,713
Interactions
2,521,293
Sentiment
88%
Volume rank
#757
X
Posts
4,689
Interactions
1,640,060
Sentiment
91%
AAVE FAQ
What is AAVE used for?
AAVE is a decentralized crypto lending platform that facilitates the borrowing and lending of digital assets. AAVE automates the lending process using smart contracts, making it efficient and secure. The protocol focuses on overcollateralized loans, where borrowers must deposit more crypto assets as collateral than the amount they wish to borrow.
How is AAVE different from Compound?
AAVE differs from Compound (COMP) in several ways. AAVE provides flash loans, enabling consumers to borrow assets without security for a brief duration. On the other hand, COMP does not provide flash loans. Additionally, AAVE offers a decentralized governance mechanism where token holders may vote on modifications to the platform.
What is the AAVE price prediction?
While it’s challenging to predict the exact future price of AAVE, you can combine various methods like technical analysis, market trends, and historical data to make informed decisions.
How much is 1 AAVE worth today?
Currently, one AAVE is worth $307.97. For answers and insight into AAVE's price action, you're in the right place. Explore the latest AAVE charts and trade responsibly with OKX.
What is cryptocurrency?
Cryptocurrencies, such as AAVE, are digital assets that operate on a public ledger called blockchains. Learn more about coins and tokens offered on OKX and their different attributes, which includes live prices and real-time charts.
When was cryptocurrency invented?
Thanks to the 2008 financial crisis, interest in decentralized finance boomed. Bitcoin offered a novel solution by being a secure digital asset on a decentralized network. Since then, many other tokens such as AAVE have been created as well.
Watch this video to learn about what happens when you move your money to a crypto exchange.
Disclaimer
The social content on this page ("Content"), including but not limited to tweets and statistics provided by LunarCrush, is sourced from third parties and provided "as is" for informational purposes only. OKX does not guarantee the quality or accuracy of the Content, and the Content does not represent the views of OKX. It is not intended to provide (i) investment advice or recommendation; (ii) an offer or solicitation to buy, sell or hold digital assets; or (iii) financial, accounting, legal or tax advice. Digital assets, including stablecoins and NFTs, involve a high degree of risk, can fluctuate greatly. The price and performance of the digital assets are not guaranteed and may change without notice. OKX does not provide investment or asset recommendations. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances. For further details, please refer to our Terms of Use and Risk Warning. By using the third-party website ("TPW"), you accept that any use of the TPW will be subject to and governed by the terms of the TPW. Unless expressly stated in writing, OKX and its affiliates (“OKX”) are not in any way associated with the owner or operator of the TPW. You agree that OKX is not responsible or liable for any loss, damage and any other consequences arising from your use of the TPW. Please be aware that using a TPW may result in a loss or diminution of your assets. Product may not be available in all jurisdictions.
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