AAVE Is In A Pullback After Gaining 114% On GHO Stablecoin Launch News
AAVE’s on-chain activity hit a year-long high that correlates with altcoins’ most recent 114% gain in the market with the launch of its stablecoin GHO.
The main reason behind the increase in on-chain activity and excellent performance in the market is the release of stablecoin GHO.
As per the latest proposal, the AAVE network has agreed to issue the native blockchain-based stablecoin through the Aave Improvement Proposal.
Users will be able to profit by borrowing GHO against other crypto assets. The protocol charges interest on loans made in the GHO and sends the payments back to the Aave DAO.
Reportedly, AAVE plans to anchor GHO with US dollars and cryptocurrencies deposited on the platform.
The DAO behind the stablecoin will determine the stablecoin’s principal interest rate. Stablecoins are a long-awaited feature of the network as they will act as a bridge between other protocols and AAVE.
According to the daily chart, AAVE is up 90% since the stablecoin news was announced but has now lost some of its gains and is moving around the $90 mark.
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