Aave Rise: Stablecoin Bill and Congressional Update

Aave Surges As Stablecoin Bill Clears Major Hurdles In US Congress!

20 May 2025 at 16: 05

Reading time: 3 minutes

Over the past few days, Aave, the leading DeFi lending protocol, has made impressive strides. In the past 24 hours, the AAVE token has seen a whopping 20% increase in value, fueled in part by a major procedural vote in the US Congress on the long-awaited GENIUS Act. This bill has the potential to provide long-awaited clarity to the stablecoin space, a sector in which Aave is firmly rooted.

Imagine a world where banks and other institutions can issue their own stablecoins, provided they meet certain requirements. That’s exactly what the GENIUS Act envisions. This development could open the door to broader institutional adoption of digital assets, something the crypto industry has long been waiting for. Currently, the legislation is on the verge of passing, with just one more vote needed to move the pendulum.

Aave plays a crucial role in the stablecoin economy. The protocol allows users to borrow, lend, and earn yield on stablecoins like USDC, USDT, and DAI. Aave even recently introduced its own overcollateralized stablecoin, GHO, launching in 2023 to lock in value within the Aave ecosystem. All this while the total value locked in the protocol surpassed an impressive $25 billion this month, a testament to the growing interest in the token’s ecosystem, at a time when it’s outpacing competitors like Lido and EigenLayer.

Aave's success is also driven by strategic moves by World Liberty Financial, the crypto initiative backed by Donald Trump. In December, the company purchased over 3.300 AAVE tokens as part of a $5 million investment in DeFi assets. These developments helped build a consensus within the community to launch Aave v3, which enables lending and borrowing with ETH, WBTC, USDC, and USDT. This association of a crypto protocol with high-profile political initiatives creates a unique synergy that further strengthens Aave’s future.

Add to that the fact that AAVE’s value has increased by over 30% in the past 90 days, which positions Aave as one of the best performing altcoins overall, while the broader crypto market saw a modest increase of just 0,2%. Sure, we’re not quite back to the recent high of $383,49 from December 28, 2024, but there’s reason to be optimistic. The growing institutional interest surrounding the GENIUS Act and Aave’s innovative moves make us believe there’s much more to come.

“Isn’t the future of Aave just bright?” It certainly seems that way, as the protocol not only grows with the market but actively influences its direction. And as Ethereum, Chainlink, and Solana While it continues to show increases, Aave remains a shining example of what is possible in the world of DeFi.

Frequently Asked Questions

Why has AAVE risen so much lately?
AAVE’s recent surge is largely due to the advancement of the GENIUS Act, which could potentially bring greater clarity and adoption of stablecoins in the US, increasing confidence in the future of the protocol.

What is the role of the GENIUS Act in these developments?
The GENIUS Act could allow banks and companies to issue their own stablecoins, leading to broader adoption of digital assets and new opportunities for Aave and other protocols.

How does AAVE compare to other cryptocurrencies?
AAVE has been a strong performer in recent times, rising over 90% in 30 days, making it one of the leading altcoins while most other cryptocurrencies are showing modest growth.

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