Aave Hits Five-Month High as DeFi Momentum Builds
Decentralized lending giant Aave (AAVE) surged to its strongest level in five months, gaining 8% over the weekend as broader optimism swept across the crypto market.
AAVE touched $330 in Monday’s session before pulling back slightly to $316, buoyed by renewed interest in DeFi tokens following Bitcoin’s rally to record highs above $120,000.
The move comes as total deposits on the Aave platform crossed $50 billion—marking a new milestone for the leading DeFi protocol.
Analysts believe Aave could emerge as a major winner from proposed U.S. crypto regulations. According to a report by digital asset manager 21Shares, “Aave is in a strong position to benefit from the GENIUS Act,” which aims to clarify the regulatory environment for stablecoins and DeFi activity.
Aave currently holds more than 5% of all circulating stablecoins, earning yield across protocols. It also issues GHO, its overcollateralized native stablecoin, with a current supply of $312 million.
The platform is preparing to expand further with its “Horizon” project, which would enable institutions to borrow stablecoins using tokenized real-world assets—such as money market funds—as collateral.
Technical Highlights:
- Trading volume jumped to 159,078 units, indicating growing institutional demand.
- Support formed around $304–$306 during the early dip.
- Resistance developed near $327.40 after multiple rejection attempts.
- The $320 level is acting as a key psychological support zone.
With strong fundamentals, growing adoption, and tailwinds from regulation, Aave may continue to lead DeFi’s next growth phase.
