Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

Aave launches GHO stablecoin on Ethereum testnet as token checks the bears

2min Read
Aave launches GHO stablecoin on Ethereum testnet as token checks the bears

Share this article

  • GHO, the Aave decentralized stablecoin was deployed on the Ethereum Testnet.
  • The AAVE price action got closer to bearish sentiment. 

Decentralized lending project Aave has launched its stablecoin GHO on Ethereum’s [ETH] testnet according to an official tweet on 9 February. The project had been working on the stablecoin since last year after it got a go-ahead from its community.


Realistic or not, here’s AAVE’s market cap in MKR’s terms


Disruption in the DeFi space

As Aave’s official stablecoin, GHO would maintain a stable value while being minted and burned by facilitators. Also, the stablecoin would function in the Aave V3 Ethereum pool by providing help with collateral asset and interest rates.

The deployment on the testnet means that the stablecoin competition in the DeFi ecosystem has now heightened.

In the space, MakerDAO [MKR] has the most popular stablecoin DAI. Additionally, Tron’s [TRX] sojourn into the sector also helped it create USDD even though that has lost its dollar peg multiple times.

However, MKR still led Aave in terms of the Total Value Locked [TVL] at press time.

At the time of writing, the MakerDAO TVL was $7.05 billion while Aave was fourth at $4.45 billion. But the growth of both protocols in the last 30 days was close. It was also a similar pattern with the performance in the last 24 hours— around a 4% decline.

AAVE DeFi TVL

Source: DeFi Llama

Further, Aave shared some other developmental updates regarding the GHO stablecoin deployment. With respect to future arrangements, Aave noted that a proposal highlighting GHO’s borrow and discount rate would be shared with its community.

In addition, key contributors to the project would develop a framework to onboard new facilitators. The updated testnet release stated,

“Following this development update there will be an ARFC, and a period of community discussion centered around the Ethereum V3 Market Facilitator and the Flashmint Facilitator.

AAVE price down

Regarding its price action, the AAVE price fell in the last 24 hours to $79.229. However, the protocol’s volume increased within the same period. 


Is your portfolio green? Check out the Aave Profit Calculator


According to Santiment, the 24-hour on-chain volume spiked to 200.26 million. This implied that a lot of transactions had passed through the Aave network since the announcement.

Aave volume and price

Source: Santiment

As per the four-hour chart, the Moving Average Convergence Divergence (MACD) showed that AAVE’s momentum was solidly bearish. This was because the blue and orange dynamic lines were below the zero histogram level.

Moreso, the highest expectation for AAVE in the short term could be consolidation due to the Directional Movement Index (DMI) trend.

At press time, the +DMI (green) was 19.31 while the -DMI (red) was 28.24. With the Average Directional Index (ADX) staying neutral, AAVE could range around $75 to $80 in the short term.

Aave price action

Source: TradingView

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.