- AAVE sees renewed investor confidence amid DeFi growth, loan activity and rising trading fees.
- Bullish momentum may push AAVE past its supply zone if current market strength holds.
Aave [AAVE] is sending shockwaves in the decentralized finance (DeFi) space. Being the leading on-chain lending protocol, the altcoin is witnessing incredible upward price momentum as much as network activity.
AAVE’s price rose by a staggering 11% in just the past week alone, and the altcoin is attracting the attention of traders and long-term investors alike.
The protocol’s growth stays in line with broader bullish sentiment within the DeFi space. It is heating up, driven by higher user participation, lending demand and growing interest in DeFi.
TVL reaches record-breaking heights
One of the primary signs of this momentum is AAVE’s Total Value Locked (TVL), which stood at around $25 billion at press time. This is a clear sign of increased investors interest and massive capital influx.
A rising TVL typically represents user activity and trust, two of the most significant indicators for DeFi protocol success.
AAVE’s elevated TVL confirmed it as a market leader in lending. Investors were committing more assets to the protocol, clearly showing improved willingness to partake in decentralized borrowing and lending.
Source: DeFiLlama
Trading volume and fees confirm bullish case
Another bullish driving force is the jump in trading volume and daily fees for AAVE. The network recently saw over $10 billion of active loans on the books.
Such intense activity on the borrowing side shows heightened on-chain utility and usage in real life, adding more credibility to its projected rally.
Also, higher trading creates more fees, which add to protocol revenue.
The increased daily fees from increased trading activity rewards stakers and token holders, enhancing the fundamental appeal for the altcoin among its investors.
Source: Sentora
Will AAVE break past the $265 supply zone?
With all signals leaning to market momentum, the question now is whether AAVE can break through the current supply zone at around $265.
The positive on-chain metrics, including TVL growth, trading fees and loan volume, paint high probabilities of bullish continuation.
If AAVE keeps advancing in this manner, a possible breakout from its current resistance level could be on cards.
However, traders should remain vigilant to overall market signals and Bitcoin trends, which affect altcoin rallies.
Currently, AAVE appears set to post further gains—provided that this DeFi strength keeps sending it upward.
Source: TradingView
