Aave Surges as Stablecoin Bill Clears Key Hurdle in US Congress

The native token of DeFi lending protocol Aave has surged by double-digit positive aspects on the day, rallying alongside a key procedural vote in Congress on the long-anticipated GENIUS Act.

If enacted, the invoice would offer long-awaited regulatory readability for stablecoins—a sector during which Aave is deeply embedded.

Particularly, the act would enable banks and different firms to difficulty their very own stablecoins offered they meet sure necessities, including to additional hypothesis it may result in wider institutional adoption. 

The bill now wants just one extra vote to cross. 

Aave performs a major function within the stablecoin economic system by permitting customers to lend, borrow, and earn yield on stablecoins like USDC, USDT, DAI, amongst others.

The protocol additionally launched its personal overcollateralised stablecoin, GHO, in 2023, designed to maintain worth seize inside the Aave ecosystem.

Its namesake token has elevated by 20% to $262 over the previous 24 hours, and greater than 90% over 30 days, CoinGecko knowledge exhibits. 

Not solely has the altcoin outperformed the general crypto market—up simply 0.2% prior to now 24 hours—it’s additionally surpassed the opposite best-performing altcoins. 

Although it’s nonetheless a way off its current peak of $383.49 from December 28, 2024.

Nonetheless, the protocol’s Complete Worth Locked reached an all-time excessive of over $25 billion this month, surpassing market leaders like Lido (LDO) and EigenLayer (EIGEN), indicating rising curiosity within the token’s ecosystem, per DeFi Llama data.

The renewed curiosity in Aave additionally follows strategic strikes by World Liberty Financial, the Donald Trump-backed crypto enterprise, which in December acquired greater than 3,300 AAVE tokens as a part of a $5 million wager on DeFi belongings.

The mission’s group later authorised launching Aave v3, providing borrowing and lending providers utilizing ETH, WBTC, USDC, and USDT.

Underneath the association, AaveDAO receives 7% of WLFI’s circulating token provide and a 20% share of protocol charges—an unusual revenue-sharing deal that additional integrates the protocol into probably the most high-profile U.S. political crypto initiatives.

That tie-in, paired with rising institutional consideration across the GENIUS Act, seems to be fueling investor conviction in Aave’s longer-term regulatory and adoption outlook.

Elsewhere out there, Ethereum (ETH) rose 4% on the day, Chainlink (LINK) gained 3.2%, and Solana (SOL) added 2.6% to commerce at $166, CoinGecko knowledge exhibits.

Edited by Sebastian Sinclair