Aave Price Surpasses $300 for First Time Since November 2021
Amid the resurgence of the altcoin sector, Aave (AAVE), a mid-cap DeFi project, recorded significant gains recently. Following a rally exceeding 44 percent last week, AAVE's price increased approximately 6.9 percent in the past 24 hours, trading around $383 on December 16.
For the first time since November 2021, AAVE closed above $300 weekly, indicating bullish control. Technical analysis shows AAVE has broken out of a weekly megaphone pattern, suggesting continued upward momentum.
The weekly Relative Strength Index (RSI) has surpassed 70 percent for the first time since April 2021, signaling a potential macro bull run. AAVE is poised to reach a new all-time high, though day traders should remain cautious of a possible retracement to test the recent breakout level near $288.
Favoring Fundamentals for Aave Ecosystem
The Aave protocol has established itself as a key decentralized financial platform on the Ethereum blockchain. This open-source and non-custodial protocol enables users to earn interest on deposits and borrow assets seamlessly, achieving over $22 billion in total value locked (TVL).
To date, the Aave platform has facilitated more than $15.8 billion in borrowed assets. Over $1.6 billion has been staked by users for passive income, representing 20 percent of its total market capitalization.
Market data from IntoTheBlock indicates that Aave holds a dominant position in the DeFi space with a market share of 45 percent. Recently, lending activities on the Ethereum network have surged, with net inflows exceeding $500 million last week.
Aave has also seen increased whale activity, particularly involving transactions over $100K. For example, Donald Trump’s World Liberty Financial (WLFI) has acquired over 4 million AAVE tokens valued at more than $1.4 million.
Data from CoinGlass reveals Aave’s futures open interest rose from about $37 million in April to over $412 million currently. However, the elevated supply of Aave on centralized exchanges may dampen bullish sentiment.
Despite this, the Aave platform is strategically positioned for substantial growth as digital asset adoption increases globally.