AAVE has recently shown notable resilience, recovering from a 15% price drop within four days as new buyers entered the market, capitalizing on the increasing momentum in DeFi. The protocol's price has risen to over $250, encouraged by a broader interest in tokenized yield markets, attracting both institutional and retail investors. This recovery comes during a period of heightened global trade tensions, which have created volatility across various risk assets. Despite these challenges, the DeFi sector is gaining traction, with the total value locked (TVL) reaching $178.52 billion, and AAVE leading the space with a TVL of $25.41 billion.
A key factor behind AAVE's resurgence has been its collaboration with Pendle for tokenized yield markets, which quickly reached their supply caps shortly after launch, indicating strong demand for yield-generating financial products. Recently, the Ethereum Foundation borrowed $2 million in GHO, AAVE's decentralized stablecoin, using ETH collateral. This move signals the foundation's strategy of employing its crypto holdings to fund operations while also supporting AAVE's protocol. The GHO stablecoin is overcollateralized within the AAVE ecosystem, with the EF's loan supported by a significant amount of ETH, and the interest payments contributing to AAVE's treasury, emphasizing a community-oriented financial model.
AAVE holds a commanding presence in the lending market, maintaining a 45% market share from January 2023 to May 2025, as per IntoTheBlock data. This statistic highlights AAVE's steady recovery and reaffirms its dominance as the largest decentralized lending protocol.
Technical analysis shows that AAVE established a robust support level around $242.70 during specific trading hours, attracting significant buying activity. A bullish ascending triangle pattern depicts higher lows that suggest accumulation, despite encountering resistance. After reaching a peak of $255.96, resistance settled at $253.75 before AAVE stabilized between $248 and $250. A notable volume spike indicated a quick price shift, establishing new resistance levels. A cup-and-handle pattern indicates accumulation following the recent drop, while consolidation at $249, paired with increased volume during upward movements, suggests potential bullish momentum building.
A key factor behind AAVE's resurgence has been its collaboration with Pendle for tokenized yield markets, which quickly reached their supply caps shortly after launch, indicating strong demand for yield-generating financial products. Recently, the Ethereum Foundation borrowed $2 million in GHO, AAVE's decentralized stablecoin, using ETH collateral. This move signals the foundation's strategy of employing its crypto holdings to fund operations while also supporting AAVE's protocol. The GHO stablecoin is overcollateralized within the AAVE ecosystem, with the EF's loan supported by a significant amount of ETH, and the interest payments contributing to AAVE's treasury, emphasizing a community-oriented financial model.
AAVE holds a commanding presence in the lending market, maintaining a 45% market share from January 2023 to May 2025, as per IntoTheBlock data. This statistic highlights AAVE's steady recovery and reaffirms its dominance as the largest decentralized lending protocol.
Technical analysis shows that AAVE established a robust support level around $242.70 during specific trading hours, attracting significant buying activity. A bullish ascending triangle pattern depicts higher lows that suggest accumulation, despite encountering resistance. After reaching a peak of $255.96, resistance settled at $253.75 before AAVE stabilized between $248 and $250. A notable volume spike indicated a quick price shift, establishing new resistance levels. A cup-and-handle pattern indicates accumulation following the recent drop, while consolidation at $249, paired with increased volume during upward movements, suggests potential bullish momentum building.
