AAVE Price Recovers 15% Amid Growing DeFi Yield Markets
AAVE has rebounded from a 15% price drop, rising from $240 to over $250 amid increasing interest in DeFi and tokenized yield markets. This recovery occurred despite global trade tensions affecting risk assets.
Key points include:
- Total value locked (TVL) in DeFi reached $178.52 billion, with AAVE commanding a TVL of $25.41 billion.
- AAVE integrated with Pendle’s tokenized yield markets, achieving supply caps quickly, indicating strong demand.
- The Ethereum Foundation borrowed $2 million in GHO, AAVE’s stablecoin, using ETH as collateral to support operations.
- Interest payments from this loan bolster Aave’s DAO treasury, promoting community participation.
- AAVE holds a 45% market share in lending from January 2023 to May 2025, reinforcing its position as the largest decentralized lending protocol.
Technical analysis shows:
- A high-volume support zone formed around $242.70, with significant buying activity.
- A bullish ascending triangle pattern indicates accumulation despite resistance.
- AAVE peaked at $255.96, stabilizing between $248-$250 after setting new resistance levels.
- A cup-and-handle pattern suggests further accumulation post-pullback.
- Current consolidation near $249, with rising volume on upward moves, hints at potential bullish momentum.
AAVE's integration of new products and sustained support levels position it as a key player in the growing DeFi sector amidst macroeconomic challenges.