AAVE’s $312 Surge: Is This DeFi’s Next Big Price Move?
Aave, one of the pillars of the DeFi world, has captured investor attention once again. Its price recently surged to $312 before slightly retreating to $297.25. For those watching closely, this may be more than a typical rally—it could be a sign of stronger momentum ahead. Let’s explore why AAVE’s fundamentals are aligning for a potential breakout and what that means for its future Aave price prediction.
Strong Network Growth Behind the Surge
AAVE’s network fundamentals are improving rapidly:
Total Value Locked (TVL) jumped to $27.5 billion, up from April’s low of $16 billion.
Total borrowed amount has surged to $17.5 billion, a strong sign of user engagement.
Monthly fees increased from $33M in April to $40M in May, pushing cumulative revenue past $211.7M.
This financial growth suggests rising utility and demand on the platform—an essential driver for price strength.
Investor Confidence on the Rise
Another bullish signal lies in AAVE’s staking and trading metrics:
Staked AAVE coins reached $912M, up from $350M just earlier this month.
Futures open interest hit a record high of $745M, indicating rising speculative interest.
Exchange supply dropped from 3.8M in December to 3.06M now—less sell pressure.
Also Read: Render Price Prediction 2025, 2026 - 2030
Bubble Risk and Technical Indicators
The Short-Term Bubble Risk Indicator stands at 1.37, suggesting bullish energy but also flagging caution. Past data shows that similar levels have led to sharp corrections, so monitoring volatility is key.
Technically, the 50-day SMA sits at $226.26, and the 200-day SMA at $240.00—both still below the current price, supporting upward momentum.
AAVE’s price action is backed by real growth and strong fundamentals. While the signs point toward continued upside, investors should watch closely for overheating. The next few weeks could define AAVE’s position in this DeFi cycle.
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