- The supply of sUSDe, a stablecoin unique to the Aave ecosystem, has been fully utilized
- At the same time, the protocol’s Total Value Locked (TVL) has reached its highest level since its inception
Despite positive developments on the Aave protocol, AAVE ($168.19)’s price dipped by 1.01% over the last 24 hours, contrary to expectations of extending its impressive 30.47% weekly gains.
In fact, an analysis by AMBCrypto suggested that the altcoin may see a price hike soon, one driven by rising interest and improving liquidity. These factors could position the asset for a stronger performance in upcoming sessions.
Supply cap reached – What does it mean for AAVE?
According to Macro Mate on X (formerly Twitter), the sUSDe stablecoin native to Aave has hit its market supply cap of $850 million within 24 hours.
Aave’s decision to cap the supply of its stablecoin is a strategic approach to mitigating risks and ensuring the effective utility of the asset. However, with the supply maxed out, this move has triggered a rise in borrowing costs of sUSDe due to high demand and limited availability.
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