According to CoinWorld, Aave’s price has reached its highest point in over a year, around $172, demonstrating a strong bullish trend.
Due to increased activity, the total value locked (TVL) in the network soared to over $13 billion in 2024, nearing levels seen in 2021. In recent weeks, Aave [AAVE] has been on a bullish trajectory, reaching its highest price point in over a year during the latest trading session. On-chain data analysis indicates a robust bullish trend, further supported by the increase in total value locked (TVL) activity.
Aave Sets New Annual Price Record
On the daily chart, AAVE closed at approximately $172 in the previous trading session, marking an increase of nearly 6%. This price level has not been retested since May 2022, representing a significant milestone for the cryptocurrency.
The recent surge has established new support at $136, while the short-term moving average (yellow line) indicates that long-term support is around $128. The Relative Strength Index (RSI) has remained above the neutral line for more than a month, suggesting a sustained bull market since August. Currently, the RSI hovers around 70, entering the overbought territory due to the recent price increase.
Market Capitalization Reflects Price Trend
AAVE’s market capitalization has risen alongside its price. According to CoinMarketCap, its market cap has now surpassed $2.5 billion, a significant increase from $882 million a year ago. The most notable growth occurred around August, jumping from approximately $1.3 billion to $2 billion.
Aave On-Chain Data Signals Bullish Trend
On-chain metrics indicate an increase in AAVE accumulation over the past few months. The total number of holders with non-zero balances rose from about 168,000 to around 170,000, followed by a slight decline to 169,000. This rise indicates that more wallets have been purchasing the asset recently.
Further analysis reveals that the activity of AAVE sharks and whales has increased. The number of wallets holding between 100 and 1,000 AAVE tokens has increased by over 1,000. Additionally, the number of wallets holding between 100,000 and 1 million tokens has increased by two in the past three days, indicating significant accumulation by large holders.
TVL Experiences Significant Growth
According to a report by Santiment, the increase in Aave’s activity is partly due to a loss of trust in Curve Finance, which suffered a major security breach in the summer of 2024. Aave’s expansion to Layer 2 (L2) platforms has also contributed to the increase in activity.
Analysis of Aave’s TVL on DefiLlama corroborates this growth, bringing it closer to levels seen in 2021. The TVL dropped to approximately $7 billion in May 2022 but rebounded to a peak of about $6.38 billion in 2023. In 2024, the quarterly TVL surged to over $13 billion. As of this writing, the TVL stands at around $12.4 billion.
Conclusion
Aave’s impressive price performance and bullish signals from on-chain data indicate strong upward momentum. The increase in market capitalization, growth in the number of holders, and significant rise in TVL all suggest that Aave’s position is strengthening, and this strengthening may continue for some time
