🟨 AAVE Rallies 9% After Fed Rate Cut — Can V4 Drive Further Upside?

Aave (AAVE) surged nearly 9%, trading around $205, as markets reacted positively to the Federal Reserve’s rate cut and growing attention on Aave’s upcoming V4 upgrade.

ā—¼ļø V4 upgrade introduces a redesigned liquidation engine

ā—¼ļø Aims to improve capital efficiency and strengthen risk management

ā—¼ļø Upgrade narrative quickly reflected in price and derivatives activity

šŸ“Š Derivatives Momentum

• Open Interest increased by $34M in 24 hours

• Signals renewed leveraged participation

• Higher leverage also raises volatility sensitivity

šŸ”— On-Chain & Revenue Growth

• Active receiving addresses nearly doubled (ā‰ˆ1.2K)

• Weekly protocol fees rose by $0.3M

• Total fees reached $15.47M, driven by lending and liquidations

šŸ“ˆ Key Liquidity Level

• Liquidation heatmap shows a $223 liquidity cluster

• A breakout above this zone could attract further upside

• Loss of leverage support may trigger sharper pullbacks

šŸ“Œ Protocol upgrades continue to shape market behavior — but positioning suggests traders should watch volatility closely.

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