🌎 Aave Price Rebound Imminent

Aave: A Rebound in Sight Due to Strong Technicals and Soaring Deposits

Aave maintained a tight trading range on Saturday, but a combination of strong technical indicators and a significant increase in deposits could signal an impending rebound. As of the last check on Saturday, Aave was trading at $353, representing a 370% increase from its 2024 lows.

Record-High Deposits and TVL

The total value locked (TVL) in Aave’s network reached a record high of 6.12 million ETH, equivalent to $5.12 billion. The ecosystem’s net deposits also soared to a record high of $36 billion, surpassing the $10 billion in deposits recorded during the same period last year. This growth has positioned Aave as the largest DeFi protocol, with $35 billion in net deposits.

Fee Revenue and Competition

Aave’s strong performance has translated into substantial fee revenue, with total fees jumping to over $474 million in the last 12 months. Notably, the protocol has maintained its competitive edge despite rising competition from lending protocols like Morpho, Spark, Compound, Venus, and Save.

V4 Project Upgrade and Aave Stablecoin Integration

Aave is currently working on its V4 project, which promises to be the largest upgrade on record. The proposal outlines a new architecture that enhances modularity and reduces governance overhead. The V4 upgrade will also integrate with GHO, the Aave stablecoin, which boasts over $146 million in assets. The upgrade is scheduled for launch in the second half of the year.

Bullish Technical Indicators and Potential Breakout

Aave tokens are leaving centralized exchanges, a bullish sign for the coin. The total tokens on exchanges dropped by 2.43% in the last seven days to 5.3 million, with only 33% of all Aave tokens currently held on exchanges. This suggests that many holders have a long-term investment horizon.

Aave’s technical indicators are also bullish, with the token remaining above the 50-day moving average. The chart pattern is forming a bullish pennant, comprising a long vertical line and a symmetrical triangle. A breakout above the confluence level could lead to a strong price increase, with initial targets at last year’s high of $400. A break above that level could point to further gains, potentially reaching the psychological point of $500.