"Aave's 7% WLFI Token Allocation Revisited…AAVE Surges 12%"

The cryptocurrency lending protocol Aave (AAVE) surged following news of its partnership with World Liberty Financial (WLFI).

On the 23rd (local time), on-chain analyst Aiga announced on X (formerly Twitter), "AAVE has been allocated WLFI tokens equivalent to 7% of the total supply as a lending partner according to a WLFI ecosystem proposal," adding, "This is currently valued at about $2.79 billion, which is half of AAVE's fully diluted value (FDV) of $5.9 billion."

According to Aiga, the proposal has existed since late last year, but the market only recently began to price it in. He explained, "While WLFI had not been recognized for a clear fair value, after its futures listing on Binance, the market was able to realistically grasp its scale, leading to a reevaluation of AAVE's potential."

On this day, the price of AAVE surged 12% from the previous day, reaching $362.85. The market interpreted the news as a reflection of expectations for expanded influence and profitability for AAVE within its ecosystem thanks to the partnership.