AAVE makes massive 114% return on market thanks to GHO release and recovering sentiment
On-chain activity for the AAVE token has reached a one-year high related to the most recent 114% price jump on the market. The main reason behind the increase in on-chain activity and great performance on this Market GHO Stablecoin Released.
What is GHO, and how will it work?
According to the most recent proposal, the AAVE network agreed to release the native blockchain-based stablecoin GHO, which is yet to be implemented through the Aave Improvement Proposal. Users will be able to earn interest by borrowing GHO against other crypto assets.
The protocol itself will charge interest on loans taken to GHO and send the payment back to Aave DAO. Reportedly, AAVE is planning to bracket GHO with US dollars and cryptocurrencies deposited on the platform. The DAO behind the stablecoin will set the base interest rate of the stablecoin.
The native stablecoin for AAVE is a long-awaited feature for the network as it will act as a bridge between other protocols and AAVE.
AAVE Market Performance
According to the asset’s daily chart, AAVE is currently moving in a local uptrend, showing a price increase of over 90% over the past 24 hours. The GHO release was only part of the foundation of the current rally, as it initially coincided with the recovery of the cryptocurrency market.
For now, AAVE is moving far above the 50-day moving average and could be aiming at the 200-day moving average as its next target, located at approximately the $130 price level. The trading volume remains at a relatively high level, which shows that the recovery rally might still be intact for a few more days or even weeks.
