- Aave’s token surged 20% as the U.S. Congress advanced the GENIUS Act, which could clarify regulation for stablecoins.
- The protocol’s Total Value Locked (TVL) reached over $25 billion, a new record.
- Over the last 30 days, AAVE is up more than 90%, outperforming other major altcoins and the broader crypto market.
- The GENIUS Act would allow banks and companies to issue stablecoins with specific requirements if passed.
- Aave has integrated with World Liberty Financial, securing a share of protocol fees and token supply.
The price of Aave’s native token climbed by 20% in the past day following progress in the U.S. Congress on the GENIUS Act, a bill aimed at providing regulatory guidelines for stablecoins. The legislation only requires one more congressional vote before it can pass into law.
According to data cited from CoinGecko, AAVE is now valued at $262, reflecting over 90% growth in the last month. The protocol’s Total Value Locked (TVL) has exceeded $25 billion this month, which surpasses other major platforms like Lido and EigenLayer as reported by DeFi Llama.
The GENIUS Act aims to allow banks and approved companies to create their own stablecoins, provided they meet regulatory requirements. This has led to speculation about increased institutional involvement in the stablecoin market, an area where Aave plays a central role by enabling lending, borrowing, and yield-generating activities on popular stablecoins such as USDC, USDT, and DAI.
In 2023, Aave launched its own overcollateralized stablecoin GHO to further support its ecosystem. The latest token rally follows moves by World Liberty Financial, a venture linked to former President Donald Trump, which acquired over 3,300 AAVE tokens in December as part of a $5 million investment in DeFi assets.
The Aave community recently approved version 3 of the protocol, supporting assets like ETH, WBTC, USDC, and USDT. As part of its collaboration, AaveDAO obtained 7% of World Liberty Financial’s circulating token supply and a 20% share of protocol fees, creating a unique revenue-sharing agreement.
Other large digital assets also saw gains: Ethereum rose 4%, ChainLink added 3.2%, and Solana increased by 2.6% to $166, CoinGecko data shows. AAVE continues to trail its all-time high of $383.49 set in December 2024.
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