Key Takeaways
AAVE DAO’s treasury has grown 123% YoY, now sitting above $125 million. Ethereum’s recent positive price action may revive Aave’s borrowing demand as well.
For anyone watching the DeFi space, Aave [AAVE] just gave us another reason to pay attention.
The protocol’s DAO treasury—excluding its native Aave tokens— surged to an all-time high of $125 million on the 20th of July. That is a 123% jump in value compared to the same period last year.
The surge is a testament to the altcoin’s ability to generate revenue and hold assets efficiently through volatile market conditions.
The current composition of the treasury is also worth a closer look. The DAO treasury is composed of 44% in stablecoins, 41% in Ethereum [ETH] and 15% spread across DeFi tokens.
This diversification reveals a measured yet growth-oriented strategy. It balances the risk while remaining deeply rooted in the crypto economy.
Why ETH matters more than ever for Aave
Ethereum’s current raising revenue add more tailwinds to Aave price action.
Historically, strong ETH price action leads to increased borrowing demand, especially on platforms like Aave that allow users to take out loans against the former’s collateral.
As more users borrow to capitalize on ETH accumulating momentum, the protocol earns more fees and that can directly feed into the value proposition for its holders.
So if ETH continues its upward trend, Aave Protocol’s usage and revenue could rise alongside it.
Source: Token Terminal
Consequently, zooming down to the on chain metrics, the altcoin has seen a sharp uptick in the number of active addresses over the last 24 hours. Increased wallet activity often signals growing interest or utility.
While it does not always mean immediate price action, it is one of those early indicators seasoned investors watch closely.
Source: CryptoQuant
Can the altcoin ride the next wave?
It is still too early to call a full breakout, but the pieces are lining up.
With strong treasury, rising ETH and growing user activity make for a compelling setup. If Aave capitalizes on this moment—either protocol upgrades or incentive shifts—it may be primed for a move.
