AAVE Crypto Market Overview

AAVE crypto has dropped below the Bull Market Support Bands, indicating stronger bearish momentum.

Key Indicators

• 20-week SMA: $254.73
• 21-week EMA: $246.92

In 2021, AAVE surged above $600 before entering a prolonged downtrend. Prices fell below support bands in mid-2022, signifying bearish control.

Throughout 2023, AAVE was mostly below $100, struggling to regain bullish momentum. Temporary price rallies faced resistance near the 20-week SMA and 21-week EMA, rejecting further gains.

The only instance of crossing above the bands occurred in late 2023, hinting at a potential trend reversal. By early 2024, prices climbed steadily, breaking above $200 and using the support bands as a foundation, eventually accelerating past $400 in early 2025. However, a recent breakdown below support bands could imply a weakening uptrend.

If prices stay below the 20-week SMA and 21-week EMA, further declines could occur. To renew bullish momentum, reclaiming the bands will be essential. The market’s response in the following weeks will influence AAVE’s trajectory, determining whether it will advance or enter another corrective phase.

AAVE Performance Metrics

AAVE has almost tripled in value over the past year, becoming the top-performing DeFi protocol with a market cap exceeding $1 billion. Recently, the price peaked at $280.3, with:
– Market Cap: $4.22 billion
– Fully Diluted Valuation: $4.484 billion

January saw AAVE’s highest monthly revenue, reflecting an uptick in DeFi activity. Annualized revenue reached $138.39 million, with fees totaling $739.39 million and borrowed funds of $13.262 billion, highlighting strong lending demand. Revenue trends showed significant recovery, exceeding $10 million in early 2025, indicating a positive upward trajectory post-2023. Sustainable revenue growth will depend on DeFi adoption, lending demand, and overall market conditions.

Total Value Locked and Monthly Revenue

AAVE achieved $20 billion in Total Value Locked (TVL) and $12 million in monthly revenue following V3.3’s launch. This upgrade introduced a token buyback mechanism, boosting investor confidence and enhancing protocol efficiency.

TVL skyrocketed from below $5 billion in 2023 to over $20 billion in early 2025, after peaking above $15 billion in 2021 and dropping below $5 billion during the DeFi downturn of 2022. A gradual recovery took place in 2024 leading up to late 2024’s breakout. Revenue spikes have correlated with increased TVL, bolstering AAVE’s profitability. If the uptrend persists, AAVE could maintain high revenues depending on DeFi adoption and user engagement. Future price movements will hinge on market conditions and the effects of V3.3’s token buyback. Sustaining high TVL will be crucial for AAVE’s long-term viability.