Surging Past $50B in Deposits, AAVE Stands to Benefit From Regulatory Moves in the U.S.

Aave Surges to Multi-Month High as DeFi Sector Gains Steam

Aave’s native token, AAVE, rallied over the weekend, climbing 8% and reaching its highest level in five months as the decentralized finance (DeFi) sector rides the wave of broader crypto market gains.

On Monday, AAVE briefly touched $330 before pulling back to around $316. The move comes amid renewed optimism in the crypto markets, with Bitcoin recently surpassing $120,000 to notch fresh record highs.

Aave, the largest decentralized lending protocol, has now surpassed $50 billion in total deposits—a new milestone for the platform. Analysts believe Aave is well-positioned to benefit as U.S. regulators advance clearer crypto rules.

“Aave remains the dominant force in DeFi lending and could see significant upside from the GENIUS Act,” said digital asset manager 21Shares in a Monday note.

The report noted that Aave controls about 5% of the total stablecoin supply, more than any other DeFi protocol, and issues its own overcollateralized stablecoin, GHO, which has grown to a supply of $312 million.

Looking ahead, Aave plans to tap into growing institutional interest with its Horizon initiative, which will allow institutions to borrow stablecoins using tokenized real-world assets, like money market funds, as collateral.

Technical Indicators:

• Trading volume spiked to 159,078 units during the morning session, signaling robust institutional interest.
• Key support levels were established between $304.25 and $305.63, laying the groundwork for the rally.
• Resistance has formed near $327.40, where the price faced multiple rejection attempts.
• The $320 mark acted as crucial psychological support during consolidation.

As momentum builds across the crypto market, Aave appears poised to remain a standout player in the DeFi space.