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  • BTC staking platform Babylon teams up with Aave for Bitcoin-backed DeFi insurance

    BTC staking platform Babylon teams up with Aave for Bitcoin-backed DeFi insurance

    Babylon teams up with Aave for Bitcoin-backed DeFi insurance

    • Babylon and Aave partner to enable native BTC as collateral for DeFi lending.
    • BTC can now back decentralised insurance pools, earning yield if unused.
    • Users retain full control of their Bitcoin while accessing DeFi liquidity.

    In a groundbreaking move for the decentralised finance (DeFi) ecosystem, Bitcoin staking platform Babylon has announced a partnership with Aave, one of the largest decentralised lending protocols.

    The collaboration aims to allow Bitcoin (BTC) holders to use their native, unwrapped BTC as collateral for lending and to participate in a pioneering DeFi insurance model.

    This will reshape how Bitcoin interacts with DeFi, unlocking liquidity while maintaining the security that Bitcoin users expect.

    Native Bitcoin collateral comes to DeFi

    Traditionally, using Bitcoin in DeFi required wrapping it into a tokenised version such as WBTC, which introduced custodial risk and extra steps. Babylon’s partnership with Aave eliminates this barrier by enabling users to deposit their native BTC directly as collateral.

    Through Babylon’s trustless Bitcoin Vaults, BTC can be locked in a time-locked contract on its own blockchain and recognised by Aave’s hub-and-spoke lending architecture.

    This allows users to borrow stablecoins or other crypto assets while keeping full control of their Bitcoin keys.

    The move is expected to significantly expand BTC liquidity in DeFi. Currently, even the largest wrapped Bitcoin initiatives account for less than 1% of Bitcoin’s total market cap.

    Babylon’s own staking product secures over 56,000 BTC, demonstrating strong demand for productive uses of Bitcoin.

    By unlocking native BTC for lending, the partnership could bring a substantial portion of the dormant Bitcoin supply into productive DeFi applications, potentially transforming lending markets.

    DeFi insurance backed by Bitcoin

    Beyond lending, Babylon is preparing to extend its vaults into the insurance sector, a development that could redefine how DeFi protocols manage risk.

    The proposed model allows BTC holders to deposit their Bitcoin into decentralised insurance pools.

    These pools would serve as coverage against protocol hacks and other failures. Depositors earn yield if no claims occur, while the pool provides liquidity for payouts in the event of a validated exploit.

    This approach turns Bitcoin into a foundational asset for DeFi risk management, offering a new avenue for yield generation while safeguarding the ecosystem.

    Babylon co-founder David Tse told CoinDesk that the insurance initiative is still in development, with an official announcement expected in January 2026.

    Testing for the integrated BTC lending and insurance products is scheduled to begin in early 2026, with a broader rollout planned around April of the same year.

    The combination of Babylon’s secure vault design and Aave’s extensive liquidity network creates a framework that prioritises both safety and usability, a balance often missing in cross-chain and custodial solutions.

    Transforming Bitcoin’s role in DeFi

    This partnership addresses longstanding challenges in Bitcoin DeFi adoption.

    By removing the need for wrapped assets and custodial intermediaries, it reduces systemic risk while enabling Bitcoin holders to put their capital to work more efficiently.

    Users can participate in lending and insurance activities without relinquishing control of their Bitcoin, aligning with the core principles of security and decentralisation that have long defined the Bitcoin network.

    Experts in the space view this collaboration as a potential catalyst for broader adoption of BTC in decentralised applications.

    Unlocking even a small fraction of Bitcoin’s supply for lending and insurance could significantly deepen liquidity and reshape market dynamics.

    For the average user, it translates into safer, more streamlined, and more productive ways to generate yield from their holdings.

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  • Aave price slides 10% as bearish momentum sweeps crypto

    Aave price slides 10% as bearish momentum sweeps crypto

    Early PUMP investors dump 25.5B tokens, pocketing nearly $40M profit

    • Aave dropped 10% in the past 24 hours, signalling strong bearish control.
    • On-chain data shows increased net outflows and spiking intraday volume, indicating panic selling by traders.
    • The $265–$250 range is critical, with a potential further decline to $225 if support fails.

    Aave, a leading decentralized finance token, has seen its price drop to $250 as the cryptocurrency market experiences significant price swings.

    Increasing bearish momentum has driven significant selling pressure, with Bitcoin and Ethereum at key levels.

    Aave price slides to $250

    Aave’s price has dropped sharply to $250, breaking below the critical $270–$265 support zone in a decline that marks a significant retreat from its recent highs near $300.

    The token now trades well below its key exponential moving averages and is down 25% in the past 30 days.

    On-chain data reveals substantial outflows, with netflows showing $11.26 million in exchange movements.

    This kind of outlook signals panic-driven selling among traders.

    For AAVE, the immediate support range of $245–$250 is now critical, with a potential further slide to $229 if this level fails to hold.

    Despite the launch of Aave’s v4 upgrade, which introduced a cross-chain Hub-and-Spoke design, the token has struggled to maintain bullish momentum.

    Trading volume has increased 159% in the past 24 hours to $593 million. Although volume is up, the price decline reflects waning retail interest.

    Aave price drops as bearish momentum deepens

    The deepening bearish momentum in Aave’s price action reflects broader market challenges and technical breakdowns.

    The Relative Strength Index has fallen to 20.9, indicating heavily oversold conditions, though no immediate reversal has materialised.

    Aave’s market capitalisation has dropped to approximately $3.9 billion, reflecting its underperformance compared to other DeFi tokens.

    The crypto market has experienced setbacks, with reduced expectations for a Federal Reserve rate cut dampening demand for high-risk assets.

    Aave price chart by TradingView

    Large holders have reduced positions, with wallets holding 100,000 to 1 million AAVE cutting their stakes by 4.3%, as some analysts suggest that the oversold RSI could trigger a short-term relief rally.

    The failure to reclaim the $289–$292 range keeps the near-term outlook negative if selling pressure persists, as Aave risks testing the $2220 support level.

    AAVE bulls last saw these levels in early June 2025.

    Broader market outlook

    Bitcoin and Ethereum’s declines highlighted a sharp descent for most alts.

    Some of the top coins by market cap, like Solana, XRP and Dogecoin, shed recent gains.

    Aave’s decline to $250 and the mounting bearish momentum highlight the broader pressure on crypto and other risk assets following sharp gains in recent months.

    DeFi tokens, which surged alongside Ethereum’s run to record highs, are now facing renewed selling pressure in the current environment.

    Analysts are warning that September could see further downside, with expectations of deeper pullbacks if sentiment continues to sour.

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  • AAVE daily fees skyrocket 200%, signaling lending market recovery

    AAVE daily fees skyrocket 200%, signaling lending market recovery

    AAVE daily fees skyrocket 200%, signaling lending market recovery

    • Aave’s daily fees increased by around 200% within the last three months.
    • They hit multi-month peaks of over $3 million per day, indicating intensified borrowing.
    • The surge reflects reinvigorated DeFi lending interest.

    Aave continues to dominate the DeFi lending market, this time attracting attention with serious figures.

    CoinGecko data shows daily fees on the blockchain have increased by more than 200% since May.

    That signals amplified on-chain activity and soaring demand for decentralised liquidity.

    Most importantly, the statistics signal DeFi borrowing resurgences.

    The chart shows AAVE’s 24-hour fees were below $1.2 million in early May.

    It had surpassed 43 million as of the end of July, printing multi-month highs.

    Revenue saw a modest gain (still below $500K) compared to collected fees, but the increase reflected enriched platform profitability.

    Furthermore, the chart reflects significant dips and spikes in fee activity, which indicates healthy volatility.

    Such fluctuations suggest an active lending market with healthy utilisation, and not instability.

    Meanwhile, daily fees are the revenue engine for Aave.

    The prevailing trend signals emerging resurgences for the protocol that saw flattened activity early in the year.

    What’s driving Aave fees?

    Borrowing demand is at the centre of the surging daily fees in the ecosystem.

    Individuals pay interest whenever they borrow on Aave, and these payments account for the highest portion of the daily fees.

    Fee income increases when more users take loans, possibly to chase price actions or leverage yield opportunities.

    Also, the latest integrations have propelled fees.

    For instance, users have deployed more than $60 million into yield-generating opportunities via MetaMask’s Aave-powered Stablecoin Earn feature.

    Such streamlined plug-ins make it smooth for retailers to access lending markets, enriching demand for AAVE’s liquidity pools.

    Moreover, the latest stable Ethereum price actions have encouraged users to (directly) interact with dApps again.

    ETH has performed well over the past few sessions, even driving the “altcoin season” narrative.

    Fees and protocol activity have surged as participants borrow assets, including stablecoins, from Aave.

    AAVE price outlook

    The native token reflected the increase in on-chain activity with notable gains.

    It has gained approximately 60% since May 1 to press time levels of $263.

    That makes it one of the top-performing DeFi assets this cycle – a notable feat, as meme coins, L2s, and centralized narratives dominate the trends.

    Meanwhile, the rising fees will possibly boost revenue in the upcoming sessions.

    That would bolster sentiments around Aave and its native coin.

    Continued borrowing activities will likely help the protocol cement its status in the DeFi lending landscape, which would bolster AAVE’s utility and price gains.

    Analyst CW predicts short-term recoveries for the altcoin.

    He highlighted that AAVE’s nearest resistance zone is at $325, a nearly 25% increase from the market price.

    Also, experts remain optimistic about AAVE’s performance.

    For example, the BitMEX co-founder recently purchased significant amounts of the token via over-the-counter.

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  • Bitcoin Pepe seals partnerships before May 31 launch as Aave price rallies

    Bitcoin Pepe seals partnerships before May 31 launch as Aave price rallies

    AAVE surges on optimism, Bitcoin Pepe bags key partnerships ahead of May 31 listing

    • AAVE has broken past $260 amid a 90% monthly gain and surging DeFi TVL.
    • Bitcoin Pepe has secured key deals ahead of its May 31 CEX listing.
    • Bitcoin Pepe (BPEP) is currently in its last token presale stage and it has seen a 71% price surge.

    AAVE has extended its bullish streak, gaining over 21% in the past 24 hours, while Bitcoin Pepe is drawing attention with strategic moves ahead of its much-anticipated May 31 listing.

    Both assets are riding separate but equally compelling narratives, one driven by surging TVL and renewed DeFi momentum and the other driven by meme coin culture and ecosystem expansion.

    With crypto investors eager to rotate capital into tokens showing strong community support and developer activity, both AAVE and Bitcoin Pepe are enjoying breakout moments in a market hungry for upside catalysts.

    AAVE powers past $260 as DeFi optimism intensifies

    At press time, AAVE was trading at $265.60, its highest level in over a year, propelled by a 90% rally in the past 30 days and a staggering 207.6% gain over the last year.

    Momentum is firmly on the side of bulls as AAVE’s 24-hour trading volume nears $884 million, signalling strong demand and sustained price discovery above previous resistance levels.

    In addition, the protocol’s total value locked (TVL) has soared to over $40.49 billion, underscoring growing confidence in Aave’s lending infrastructure and its relevance in the broader DeFi ecosystem.

    This spike in TVL not only reflects increased user deposits but also signals growing institutional trust in permissionless, decentralised borrowing and lending platforms.

    Technically, AAVE has broken through a stubborn resistance at around $250–$262, invalidating prior local tops and opening the door to a possible retest of the $300 psychological level.

    On-balance volume has also turned sharply upward, suggesting that buyers are absorbing sell pressure and accumulating in anticipation of further upside.

    Additionally, the 24-hour price range of $218.49 to $269.13 shows heightened volatility but confirms that higher lows continue to form, a classic hallmark of bullish structure.

    With a market cap now exceeding $4 billion and circulating supply nearing 15.1 million tokens, AAVE appears to be gaining both retail and institutional traction.

    Many traders are now watching for potential retracements to the $210–$220 zone, which could act as new support should a short-term correction occur.

    Given its strong fundamentals, technical breakout, and rapidly climbing TVL, AAVE is now positioned as a flagship asset for DeFi resurgence narratives this quarter.

    Bitcoin Pepe locks in strategic partnerships as May 31 listing approaches

    While AAVE makes headlines for price action, Bitcoin Pepe (BPEP) is fueling its own rally through ecosystem expansion and strategic brand positioning ahead of its centralised exchange debut.

    Built on a new token standard dubbed the PEP-20 token standard, Bitcoin Pepe is marketing itself as the “Solana of Bitcoin,” promising a Layer-2 experience native to the world’s most secure blockchain.

    Ahead of its May 31 listing as its token presale comes to an end, Bitcoin Pepe has announced a string of high-profile partnerships with the likes of Catamoto, Super Meme, Plena Finance, GETE Network, Crypto Hunters and BETV, aimed at accelerating adoption and enhancing token utility.

    With strong emphasis on staking incentives and interoperability, the project is creating buzz among early adopters and meme coin enthusiasts looking for more than just hype.

    Currently in the last presale stage, Bitcoin Pepe’s token, BPEP, has seen a 71% price surge, with projections of an explosion post-listing buoyed by its innovative approach to memecoins.

    Bitcoin Pepe’s roadmap signals a robust ecosystem growth, including plans for bridge infrastructure, PEP-20 DEX listings, and NFT integrations that tap into Bitcoin’s Ordinals movement.

    Developers are also rolling out native tools to simplify onboarding, enabling software engineers and crypto-native users to interact with PEP-20 tokens through wallet extensions and SDKs.

    This strategic positioning has helped Bitcoin Pepe carve out a niche in the crowded meme coin market by offering substance alongside viral branding.

    With just days to go before its major listing, the token’s growing community and tech-forward narrative are converging into a potential breakout moment.

    Given the current appetite for meme projects with real use cases, Bitcoin Pepe is increasingly being seen as more than just another speculative token.

    If momentum sustains through listing day, BPEP could emerge as one of the few meme coins to successfully transition into infrastructure relevance on Bitcoin.

    In a market now rewarding both utility and storytelling, Bitcoin Pepe’s rise comes at a time when narrative-driven investing is back in full force.

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  • Aave spikes to 5-month high as Bitcoin tests area near $62k

    Aave spikes to 5-month high as Bitcoin tests area near $62k

    • Aave reached a five month high above $143 with a 14% spike.
    • Bitcoin broke to above $61,800, with price gaining 4% amid fresh crypto resilience.

    Aave continued to outperform peers on August 21 with a sharp ascend to its highest level in five months. Meanwhile, Bitcoin price broke above $61,800 with a 4% surge in 24 hours.

    AAVE spikes 14% to hit 5-month high

    Decentralised finance (DeFi) protocol Aave (AAVE) was among the top gainers on Wednesday after surging more than 14% to hit highs of $143. Aave’s native utility and governance token reached the level amid huge whale activity in the past few days.

    There was also positive news for Aave after the DeFi project’s Aave V3 deployed on ZKsync Era Mainnet.

    AAVE price forecast

    Rising to above $143, Aave’s price moved to its highest level since March 2024. This is the period when Bitcoin rode the halving mania and spot BTC exchange-traded funds to reach its all-time high.

    AAVE’s push to current levels means the altcoin could eye fresh gains to the $177-$200 price area. However, the spike in AAVE price has also seen a sell signal flash on the daily chart.

    Crypto analyst Ali Martinez shared this price outlook for AAVE earlier in the day.

    Bitcoin bulls target breakout above $60k

    While Bitcoin has struggled for momentum since the brutal sell-off in early August, bulls have remained largely undeterred. Buyers have shown great resolve in their quest to rally above the $60k.

    In the past 24 hours, the benchmark crypto has climbed to above this crucial level and currently looks set to extend the slight advantage.

    BTC has reached an intraday high above $61,838 on top crypto exchange Bitstamp.

    BTC chart

    The gains have the BTC/USD pair touch the 50-day simple moving average, accentuating the formation of an ascending triangle pattern. In technical analysts, the ascending triangle is seen as a bullish chart pattern where the resistance level follows a horizontal line.

    Meanwhile, swing lows follow a rising trendline that forms a narrowing triangle as price looks to resolve on the upside.

    BTC/USD daily chart. Source: TradingView

    Bitcoin’s daily chart suggests this is the case for BTC since the dip to lows of $49,577 on August 5. Notably, the 50-day SMA currently acts as a robust hurdle. If bulls decisively break higher, price could target the key supply wall around $68,255.

    However, should weakness resurface, the primary support area could be around $58,266 and then $55,800.

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