Aave Climbs to Five-Month High as DeFi Heats Up in Crypto Rally
Aave’s native token, AAVE, surged over the weekend, gaining 8% to hit a five-month high amid renewed enthusiasm across the crypto market.
The blue-chip DeFi asset touched $330 during Monday’s session before easing back to around $316. The gains come as Bitcoin smashed through fresh records above $120,000, lifting sentiment across digital assets.
Aave continues to dominate decentralized finance (DeFi) lending, with deposits on the protocol recently crossing a record $50 billion. Analysts say Aave could be a key winner if U.S. crypto regulation advances further.
“Aave is the leading lending platform in DeFi and stands to benefit significantly from the GENIUS Act,” wrote digital asset manager 21Shares in a report on Monday.
The report noted Aave currently holds about 5% of the stablecoin supply—the highest among DeFi protocols—and issues its own overcollateralized stablecoin, GHO, which has grown to a $312 million supply.
Looking ahead, Aave is gearing up for its Horizon project, aiming to attract institutional players by letting them borrow stablecoins backed by tokenized real-world assets like money market funds.
Technical Overview:
- Trading volume spiked to 159,078 units in the morning session, highlighting strong buying activity.
- Support levels formed between $304.25 and $305.63 during early pullbacks.
- Resistance emerged near $327.40, creating a ceiling after multiple rejection attempts.
- The $320 level acted as steady psychological support during consolidation.
As crypto markets charge higher, Aave remains in focus as one of DeFi’s most significant players poised for further growth.
