- Coinglass open interest is rising and is at its highest this year, indicating an influx of new money.
- Santiment daily active addresses are rising, signaling a bullish move.
- Investors should be cautious about spikes in the Network Realized Profit/Loss metric.
AAVE (AAVE) has surged 15% since Monday and is maintaining its upward momentum with a 3.5% increase to $133.42 for the third straight day on Wednesday. On-chain data shows that AAVE's open interest data and daily active addresses are rising, signaling the continuation of the bullish trend.
AAVE price gains traction as on-chain data suggests a positive trend
Data from CoinGlass shows that the futures' Open Interest (OI) in AAVE at exchanges is also increasing. The OI indicates the total number of outstanding derivative contracts that have not been settled (offset by delivery) and whether money flows into the contract are increasing or decreasing.
Increasing OI represents new or additional money entering the market and new buying, which suggests a bullish trend. When OI decreases, it is usually a sign that the market is liquidating, more investors are leaving, and the current price trend is ending.
The graph below shows that AAVE's OI increased from $106.24 million on Monday to $177.55 million on Wednesday, the highest OI since the start of this year. This indicates that new or additional money is entering the market and new buying is occurring.
AAVE Open Interest chart
Santiment's Daily Active Addresses index helps to track network activity over time. A rise in the metric signals greater blockchain usage, while declining addresses point to lower demand for the network.
In AAVE's case, Daily Active Addresses have risen by 65% from Monday to Wednesday. This rise is the highest since the end of December 2023 and indicates that demand for AAVE's blockchain usage is increasing, which could propel a rally in AAVE's price.
AAVE Daily Active Addresses chart
Additionally, Coinglass's long-to-short ratio stands at 51.06%. This ratio suggests a bullish sentiment in the market, as the number above 50% suggests that more trades anticipate that the price of AAVE will rise.
AAVE long-to-short ratio chart
Despite new buying, greater blockchain usage, and increasing bullish sentiment, AAVE's Network Realized Profit/Loss metric shows an upward spike. This indicates that its holders are, on average, selling their holdings at a significant profit. Consequently, investors should not anticipate an immediate price rally for the token.
AAVE Network Realized Profit/Loss chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
![Solana revenue hits multi-month lows as Pump.fun competition, Ethervista, launch on Ethereum](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Solana/solana_XtraSmall.jpg)
Solana revenue hits multi-month lows as Pump.fun competition, Ethervista, launch on Ethereum
Solana's (SOL) daily revenue hit a six-month low on Monday, accompanied by a drop in its daily transaction volume. The rapid decline reflects a drop in trader interest following the launch of Pump.fun competitors Ethervista on Ethereum and SunPump on the Tron blockchain.
![Ethereum exchange reserve increased by 163K ETH in five days amid price consolidation](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ethereum/ethereum_XtraSmall.jpg)
Ethereum exchange reserve increased by 163K ETH in five days amid price consolidation
Ethereum (ETH) is down over 2% on Tuesday following an indication of selling pressure due to an uptick in its exchange reserve. However, other on-chain metrics indicate mixed investor sentiment amid ETH's price consolidation.
![XRP breaks past key resistance, Ripple announces plans for Ethereum-compatible smart contracts](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
XRP breaks past key resistance, Ripple announces plans for Ethereum-compatible smart contracts
Ripple (XRP), a cross-border payment remittance firm, made several key announcements in Japan and Korea on September 3. One of the key announcements was the plan for an Ethereum-compatible sidechain on the XRP Ledger.
![Bitcoin recovery faces challenge at key resistance zone, gains likely temporary](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/Bitcoin_Book_XtraSmall.jpg)
Bitcoin recovery faces challenge at key resistance zone, gains likely temporary
Bitcoin (BTC) trades at around $59,000 on Tuesday after a slight recovery the day before. However, this rebound might be short-lived as it nears a crucial resistance barrier. Institutional interest is growing, driven by VanEck’s optimistic Bitcoin forecast, a strategic partnership between Metaplanet and SBI VC Trade, and increased wallet holdings.
![Bitcoin: Will BTC continue its ongoing decline?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.