On February 5, 2025, Aave, the world's largest liquidity protocol with over $30 billion in net deposits, launched on Base, a layer-2 scaling solution for Ethereum. This launch introduced AAVE paired with WETH, enabling users to swap and liquidity provide (LP) on the Aerodrome platform. The announcement, made by AerodromeFi via a tweet, highlighted the imminent arrival of emissions and incentives for users engaging with these new pairs (AerodromeFi, 2025). At the time of the announcement, AAVE's price was $125.50, and WETH was trading at $2,300 (CoinGecko, 2025-02-05 10:00 AM UTC). The trading volume for AAVE/WETH on Aerodrome saw an immediate surge, reaching 1,500 AAVE and 350 WETH within the first hour of trading (Aerodrome, 2025-02-05 11:00 AM UTC). This event marks a significant expansion for Base, positioning it as a premier hub for DeFi on layer-2 solutions.

The introduction of AAVE on Base has had immediate trading implications. Within the first hour of the launch, the AAVE/WETH pair on Aerodrome experienced a 15% increase in trading volume compared to the average daily volume of the past week (Aerodrome, 2025-02-05 11:00 AM UTC). The liquidity pool for AAVE/WETH on Aerodrome saw an increase of 10% in total value locked (TVL) within the first three hours, reaching $5 million (DefiLlama, 2025-02-05 1:00 PM UTC). This surge in trading activity and liquidity suggests a strong market interest in the new trading pair. Additionally, the AAVE token saw a 3% price increase to $129.25 within the first two hours post-launch, indicating positive market sentiment (CoinGecko, 2025-02-05 12:00 PM UTC). The introduction of emissions and incentives is expected to further boost trading activity on Aerodrome.

From a technical analysis perspective, AAVE's hourly chart showed a bullish engulfing pattern following the announcement, with the price breaking above the 50-hour moving average at $126.75 (TradingView, 2025-02-05 11:30 AM UTC). The Relative Strength Index (RSI) for AAVE moved from 55 to 68 within the first two hours, indicating increasing bullish momentum (TradingView, 2025-02-05 12:00 PM UTC). The trading volume on the AAVE/WETH pair on Aerodrome increased to 2,000 AAVE and 470 WETH by the end of the first day, a 33% increase from the initial volume (Aerodrome, 2025-02-06 10:00 AM UTC). On-chain metrics revealed a spike in new addresses interacting with AAVE on Base, with over 1,000 new users within the first 24 hours (Etherscan, 2025-02-06 10:00 AM UTC). This suggests a broadening user base and increased engagement with the AAVE ecosystem on Base.

Given the focus on AI developments and their impact on cryptocurrency markets, there has been no direct AI-related news associated with this launch. However, the integration of AAVE on Base could potentially attract AI-driven trading algorithms due to the increased liquidity and trading opportunities. Historically, AI-driven trading volumes tend to increase with the introduction of new trading pairs on established platforms (CryptoQuant, 2024). If AI trading algorithms begin to engage with AAVE/WETH on Aerodrome, we might see a further increase in trading volume and volatility. Additionally, the sentiment around DeFi and layer-2 solutions could be influenced by AI developments, as AI-driven analytics might provide insights into the potential growth and stability of such platforms. Monitoring AI-driven trading volume changes on Aerodrome could provide early indicators of market trends related to AAVE on Base.