Aave (AAVE), the governance token of the lending platform of the same name, has seen a 44% price increase in the past 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 purchased 3,357 AAVE for an amount close to $1 million .
Cryptocurrency purchases by recognized entities or public figures are interpreted as a 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.
The purchase may also have been made to provide liquidity to the platform and to 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.
Aave price for the past 7 days. Source: CoinMarketCap.
It is also important to remember that, at the end of November, WLF announced a partnership with Aave to launch an instance of Aave V3 on the Ethereum mainnet . The platform, which is controlled by Donald Trump Jr. and Eric Trump, reportedly chose Aave for its reputation as “the best protocol in its class,” highlighting its security and track record.
WLF’s strategy doesn’t stop at the Ethereum mainnet , with its focus on expanding to Scroll, a rollup known for its low transaction fees and high throughput. “This makes DeFi more affordable and accessible, allowing retail users to experience a seamless DeFi platform,” WLF said.
