Aave (AAVE), governance token of the eponymous lending platform, has had a price increase of 44% in the last week.
The main driver for this movement has been a purchase of this digital asset made by World Liberty Financial, the decentralized finance (DeFi) platform promoted by Donald Trump, the next president of the United States.
Yesterday, December 11, 2024, World Liberty Financial bought 3,357 AAVE for an amount close to $1 million.
Purchases of cryptocurrencies by recognized entities or public figures are interpreted as significant endorsement or interest in the Aave protocol. Thus, the asset increases its visibility and attracts new investors, which generates an upward momentum in its price.
It may also be that the purchase was to have liquidity on the platform and be able to provide services to its users.
Whatever the reason for this acquisition, in the last 7 days, AAVE went from $262 to $377.
Likewise, it is important to remember that, at the end of November—as reported by NoticiasVE—WLF announced a partnership with Aave to launch an Aave V3 instance on the Ethereum mainnet. The platform, which is reportedly under the control of Donald Trump Jr. and Eric Trump, chose Aave for its reputation as “the best protocol in its class,” highlighting its security and track record.
WLF’s strategy does not stop at the Ethereum mainnet, and is aiming to expand to Scroll, a rollup known for its low transaction fees and high performance. “This makes DeFi more affordable and accessible, allowing retail users to experience a seamless DeFi platform,” they highlighted from WLF.