The total locked value (TVL) of AAVE, the leader of the decentralized lending protocol, has now grown to US$12.966 billion, reaching the highest level since the Terra thunderstorm on May 6, 2022, with an increase of 20% in the past seven days.
AAVE TVL hits a two-year high, and Ethereum spot ETF is approved as a positive boost
Regarding the rapid growth of AAVE TVL this week, DL News reported that this is the latest sign that DeFi has recovered from numerous disasters since the 2022 bear market. It also shows that after Bloomberg ETF analysts broke the news that the U.S. Securities and Exchange Commission (SEC) Cryptocurrency traders are piling into Ethereum following the approval of the 19b-4 filing for an Ethereum spot ETF on Friday.
More than $517 million worth of cryptocurrency has been deposited into AAVE V3 since Bloomberg senior ETF analyst Eric Balchunas significantly raised the probability of Ethereum spot ETF passing from 25% to 75% on Tuesday; AAVE has borrowed cryptocurrencies in the past 24 hours The amount exceeded US$6.8 billion, a new high since May 9, 2022.
At the moment of writing, the AAVE currency price is temporarily quoted at 95.66 US dollars, with an increase of 10.3% in the past 7 days; while ETH is reported at 3,784 US dollars, with a sharp increase in the past 7 days. 25.6%.
CryptoQuant: ETH flows into exchanges hit new high since March
On the other hand, although multiple sources currently point out that the probability of Ethereum spot ETF approval has surged, this still does not mean that we will see the Ethereum spot ETF listed soon. Previously, ETFStore President Nate Geraci issued an article on Monday stating:
"The SEC may approve 19b-4, but slow down the execution of S-1. The interval between the two may take weeks or even months, which will technically slow down the progress of listing."
In this regard, Cryptoslate quoted the on-chain analysis agency CryptQuant, warning that if the SEC reverses its attitude and rejects the Ethereum spot ETF application or delays the approval process, ETH may stimulate "significant price adjustments". In addition, the surge of ETH flowing into the exchange may also leading to ETH price volatility in the coming days.
According to CryptQuant research director Julio Moreno, he tweeted yesterday that amid rumors of the potential approval of the Ethereum spot ETF, the net flow of ETH into the exchange reached 62,000 ETH, the highest level since March.
Most of this ETH flows into Binance and Bybit exchanges. Fund flows into exchanges are often accompanied by increases in trading volume, leading to price fluctuations.
ETH open interest exceeds $10 billion, hitting record high
CryptQuant also said that traders opened long positions in the futures market in anticipation of price increases, which created upward pressure on prices, causing ETH's open interest to exceed $10 billion on the 21st, a record high, resulting in a large number of short positions. liquidation.
In addition, long-term holders of ETH purchased more than 100,000 ETH in a single day on the 21st, which was the highest single-day amount since September 2023. It also became a major force driving the price of ETH this week.
