AAVE Price Surges 80% as DeFi Activity Soars, TVL Reaches $24B

AAVE has seen remarkable price growth over recent weeks as DeFi activity surges across the crypto ecosystem. The token is currently trading between $255-$260

DeFi activity has been heating up in recent weeks, and one of the tokens that has seen impressive price growth as a result is AAVE.

The AAVE token, used for lending and borrowing on the protocol, has seen a minor correction of 3-5% over the last 24 hours after a hot few weeks of price gains.

AAVE is currently trading between $255-$260, up 11% for the week and a whopping 80% over the last 30 days. For reference, Ethereum (ETH) has risen 60% over the same period.

This upward momentum comes as part of a broader recovery in the DeFi sector, with investor confidence in decentralized finance platforms growing.

AAVE saw some profit-taking on Monday as part of a broader cryptocurrency pullback that saw Bitcoin (BTC) fall below $40,000.

However, AAVE quickly bounced back from the pullback, suggesting that the token could continue its upward trajectory in the coming weeks.

Here’s a closer look at some of the key factors driving AAVE’s price surge and what could be next for the protocol.

Aave’s TVL Surges Above $24 Billion As Protocol Adds Aptos Integration

Aave’s Total Value Locked (TVL) has now reached approximately $24-25 billion, making it the largest single DeFi protocol by this metric.

On-chain data shows AAVE’s TVL has increased about 3.6 times since January 2024, recovering from $6.6 billion to nearly $24 billion. During this same period, the total DeFi TVL doubled from $56 billion to $115 billion.

Aave’s market share within the DeFi ecosystem has grown from 11% to 20% in less than 18 months. This increase highlights the growing adoption of Aave’s lending markets across Ethereum and various Layer-2 networks.

One key catalyst for recent growth was the May 19 deployment of Aave’s V3 protocol on the Aptos blockchain.

This launch marks Aave’s first integration outside of Ethereum Virtual Machine (EVM) compatible chains, opening up new markets for the protocol.

Aptos integration appears to have sparked renewed interest from traders and users. Derivatives data shows a 42% jump in Aave open interest to $576 million immediately following the announcement.

Trading volume also surged to $1.84 billion during the rally, representing a 90% increase. These figures suggest many traders are rotating into Aave following the Aptos integration.

Beyond new blockchain integrations, Aave is also expanding its asset offerings. The team is currently discussing new collateral types, including Uniswap V4 LP tokens and the BNB-based Soneium token.

These potential additions would allow users to borrow against liquidity positions from Uniswap v4 pools and assets from the Binance ecosystem, further enhancing the protocol’s utility and appeal.

Aave’s network is also seeing incredible activity on the borrowing side, with the protocol recently recording over $10 billion in active loans.

This demonstrates real-world utility and growing demand for DeFi lending services, which could continue to drive interest in Aave.

Higher trading activity generates more fees, which directly benefit protocol revenue. These increased daily fees reward stakers and token holders, enhancing Aave’s fundamental appeal among investors.