Aave Token Price Soars Toward $200 Amid Short Squeeze

Aave's token price surged by around 13% in a 24-hour period, reaching an intraday high of $187.50 as a wave of forced short liquidations and increased derivatives trading pushed it toward the psychologically significant $200 level.

The rally extended Aave's seven-day advance to over 26%, with futures trading volume totaling approximately $1.09 billion and open interest climbing to about $535 million, indicating a substantial influx of capital into active derivatives positions.

Short sellers bore the brunt of the move, accounting for around 85% of total liquidations worth $3.82 million over 24 hours, with leveraged shorts being forced to buy back tokens and fueling the upward momentum.