Volatility warning: AAVE TVL hits a two-year high, inflows into exchanges make Ethereum hit a 2-month high

This site (120bTC.coM): The total locked value (TVL) of AAVE, the leader of decentralized lending protocols, has now grown to 12.966 billion US dollars, setting the highest level since the Terra thunderstorm on May 6, 2022. The increase was as high as 20% on the 7th.

AAVE TVL hit a two-year high, and the approval of the Ethereum spot ETF was a positive boost

Regarding the rapid growth of AAVE TVL this week, DLNews reported that this It is the latest sign that DeFi has recovered from the numerous disasters since the 2022 bear market, and also shows that after Bloomberg ETF analysts broke the news that the U.S. Securities and Exchange Commission (SEC) will approve the 19b-4 filing of the Ethereum spot ETF as soon as Friday. , cryptocurrency traders are flooding into Ethereum.

More than $517 million worth of the cryptocurrency has been deposited into AAVE V3 since Bloomberg senior ETF analyst Eric Balchunas sharply raised the odds of the Ethereum spot ETF passing from 25% to 75% on Tuesday; AAVE nearly The amount of cryptocurrency borrowed in 24 hours exceeded $6.8 billion, a new high since May 9, 2022.

Users may deposit ETH to AAVE and lend USDT to buy more ETH. While holding spot, they can increase leverage.

At the moment of writing, the AAVE currency price is temporarily quoted at 95.66 US dollars, an increase of 10.3% in the past 7 days; while ETH is reported at 3,784 US dollars, a surge of 25.6% in the past 7 days.

CryptoQuant: ETH flowing into exchanges hit a 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 is still not the case. This means we will soon see an Ethereum spot ETF listed. 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 delay listing. "

In this regard, Cryptoslate cited 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 "major price adjustments." , in addition the surge in ETH flowing into exchanges may also cause 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 these ETH flow into Binance and Bybit exchanges. The flow of funds into the exchange is often accompanied by an increase in trading volume, leading to price fluctuations."

ETH open interest breaks through 10 billion US dollars, a record high

CryptQuant also said that traders opened long positions in the futures market in anticipation of price increases, thus generating upward pressure on prices, causing ETH’s open interest to fall on the 21st Breaking through $10 billion, a record high, leading to massive short 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, and also It has become a major force driving the price of ETH this week.

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