AAVE, the native token of the leading DeFi lending protocol, has seen remarkable price growth recently.

AAVE has gained approximately 11% over the past week and an impressive 80% over the last 30 days, according to CoinMarketCap data.

Aave (AAVE) price has seen remarkable growth recently, rising approximately 11% over the past week and 80% over the last 30 days to reach $255-260 levels, according to CoinMarketCap data.

This rally is part of a broader DeFi recovery, with Ethereum also increasing by 60% in the same timeframe. However, in the last 24 hours, the price has dipped about 3-5% as investors tend to book profits.

Despite this minor correction, Aave's performance has outpaced many other altcoins, highlighting the growing demand for DeFi lending services.

Strong trading activity is evident, with 24-hour trading volumes currently hovering around $475 million, remaining high compared to historical averages.

Moreover, there has been an increment in short liquidations as prices moved higher, which indicates that bearish positions were forced out during the rally – a sign of continued upward pressure.

Record TVL Growth

Aave's ecosystem is experiencing explosive growth in locked assets. According to DeFiLlama, Aave's Total Value Locked (TVL) has topped $24-25 billion, making it the largest single DeFi protocol by TVL.

On-chain analytics from Sealaunch show Aave's TVL has jumped roughly 3.6 times since January 2024, rising from about $6.6 billion then to $23.8 billion now.

During this same period, total DeFi TVL has roughly doubled from $56 billion to $115 billion, highlighting the substantial growth in the DeFi sector.

This growth has boosted Aave's market share of DeFi TVL from 11% to 20% over that period. These numbers underscore the strong adoption of Aave's lending markets across Ethereum and Layer-2 chains.

The protocol has also recorded over $10 billion of active loans, showcasing its real-world utility and the increasing usage of its borrowing and lending services.

A key catalyst for recent growth was Aave's May 19 deployment of its V3 protocol on Aptos – its first launch on a non-EVM blockchain.

This Aptos integration "marks a new era for cross-chain crypto lending" and has already boosted activity.

Derivatives data from CoinGlass shows a 42% jump in Aave open interest (to $576 million) immediately after the Aptos announcement.

Trading volume likewise surged – up 90% to $1.84 billion during the rally.

These on-chain flows suggest many traders and users are rotating into Aave following the Aptos integration. The protocol's expansion beyond Ethereum appears to have widened its reach and fueled user interest.

Technical Analysis

AAVE remains in a strong uptrend from a technical perspective. The price is trading well above its main moving averages.

The 200-day EMA is around $200 and the 10-day EMA/SMA is near $237. With prices between $255-260, AAVE is trading above both short and long-term averages, a classic bullish signal.

Momentum indicators also support the uptrend. The Relative Strength Index (RSI) is approximately 71.2, placing it in overbought territory. The MACD has turned positive, further confirming bullish momentum.

However, some caution may be warranted due to the high RSI reading, which suggests short-term overbought conditions.

The 20-day SMA at $214 serves as near-term support, with resistance flagged near $270 as the next hurdle. A decisive break above $270-280 would be needed to maintain bullish momentum.

Aave is also expanding its asset menu. The team is discussing new collateral types, including Uniswap V4 LP tokens and the BNB-chained Soneium token.

Integrating these assets would allow users to borrow against liquidity positions from Uniswap v4 pools and the Binance ecosystem, enhancing the protocol's utility.

This planned collateral expansion highlights Aave's ongoing development and could attract more liquidity and borrowers once implemented.