Is AAVE the next big DeFi token in crypto?The Aave token pumped 44% over the past 4 weeks, with its price climbing from $94 to $134 This impressive increase outpaced the performance of other leading cryptocurrencies by market value, such as Bitcoin and Ethereum.
Its 100% up since our first analysis and Im sure you add couple of Lambos to your Car collection so lets where we going now
Recently we stumbled upon an intriguing chart showing AAVE’s price compared to ETH
We tried our best, but we couldn’t ignore it! Something big is brewing… and it seems like the market is yet to catch on.This surge isn't the result of a few people buying in here and there it takes significant buying pressure to outperform ETH this dramatically.
Not only that, but Aave’s revenue is on the rise.
We're loving this uptrend in quarterly revenue also we've heard about new proposals for updated tokenomics and activating the fee switch yet another reason this setup is impossible to ignore!
But hold on sometimes short term hype or incentives inflate revenue. Is that the case with Aave, or is it a genuinely solid investment opportunity?
That’s the focus of our analysis, along with other key questions like:
Is Aave still the market leader in the lending and borrowing sector?
What are the key support and resistance levels to watch for?
Is the revenue growth driven by incentives?
Can Aave compete with Goldman Sachs?
Where are Aave's 1M users coming from?
wait a sec, Im new to crypto WHAT IS AAVE? ok! lemme explain
Aave, a respected pioneer in DeFi, first launched as ETHLend in 2017.
In 2020, it rebranded to Aave and has been on quite a journey since (that's what we are exploring today)—a remarkable one at that. Aave is a decentralized lending platform that connects lenders and borrowers, functioning similarly to a bank.
Users can deposit their money to earn yield, while others can borrow funds. To borrow, users must deposit collateral that exceeds their debt, ensuring repayment.Aave keeps the difference between the interest paid by borrowers (higher) and the interest paid to lenders (lower).
But unlike traditional banks, Aave relies on smart contracts to handle everything—no need for grumpy loan managers asking why 100% of your net worth is in crypto. People and degens love the permissionless, 24/7 access Aave offers for lending and borrowing. No KYC, no approvals, no waiting. It’s a massive improvement over traditional banking!
So let's tap into Aave's potential
Over the years, Aave has attracted substantial liquidity, further cementing its place in the DeFi space. Just take a look at the TVL, which shows the amount of money currently deposited in the protocol.
Aave currently holds around $12.3 billion in Total Value Locked aka TVL, which may seem small compared to major US banks like JPMorgan ($2.2 trillion) or Goldman Sachs ($363 billion).
But this ain’t a bug, it’s a feature! One that highlights the enormous market Aave could tap into but how can a crypto protocol look to compete against global financial giants like JP Morgan and Goldman Sachs? In a single word: efficiency
Aave has 30 times less TVL than Goldman Sachs, but it also has 750 times fewer employees. Just take a look at the number of employees needed per $1 billion in TVL:
Aave: 5 employees
JPMorgan: 115 employees
Goldman Sachs: 123 employees (Did you check thier new logo! its more of a Goldman Sucks)
See the difference in efficiency?
We certainly do, and that's why we believe Aave could eventually disrupt these giants.
Now, let’s dive into how Aave’s business works.
AAVE BUSINESS MODEL
Aave's business model is relatively straightforward: They offer yield to lenders, charge borrowers a higher interest rate, and the difference generates the protocol's revenue—essentially the same way banks make money.
Currently, you can lend CRYPTOCAP:USDC on Aave for 5.8% and borrow it for 7.6%. These percentages vary based on usage. if a bunch of CRYPTOCAP:USDC is borrowed and there's not much left in reserve, the yield and interest rates will increase to attract new depositors, while discouraging additional borrowing and vice versa
whales accumulating again ?
On chain data reveals that AAVE's Open Interest and daily active addresses are on the rise, indicating a sustained bullish trend. AAVE's OI grew from $107 million on Monday to $191 million by Thursday, marking the highest OI level since the beginning of the year and currently, AAVE’s open interest is at $175 million
Investor interest in the Aave token gained momentum in late July, spurred by a proposal from Aave-Chan Initiative founder Marc Zeller to allocate a portion of the platform’s net earnings to key participants in the ecosystem and to adjust fees for repurchasing AAVE from the secondary market. Another catalyst for the AAVE rally was the ‘Umbrella’ Initiative, which proposed shifting from a 'seize and sell' liquidation mechanism to a 'seize and burn' model.
the Umbrella project is designed to ease market pressure from selling AAVE while managing risky loans. The initiative aims to use a variety of assets to settle outstanding debts during liquidations, especially when the collateral is insufficient, rather than relying solely on AAVE.
next targets for Aave is 149 , 160 and 170$
Are you bullish on Aave?
AAVEUSDT trade ideas
AAVE. Long. Ready to exit the accumulation zone.AAVE has been in accumulation mode for a very long time. This should give a strong impulse. The parabolic structure tells us that the exit will most likely be upward.
It makes sense to enter at current prices.
The nearest target is 240. The second target is 400.
AAVE/USDT Breakout Targets 43% Gain – Key Levels AheadAAVE is showing strong momentum after breaking out of a key pivot zone and heading toward major resistance levels:
Pivot Zone (Blue): AAVE has flipped the $120–$135 level into support, which is critical for maintaining its bullish trajectory.
First Resistance (Red): The next target is $240, offering a potential 43% upside from the current price of $169.
Major Resistance Zone: A breakout above $240 could pave the way to the $660–$750 range, indicating a possible long-term bullish reversal.
Conclusion:
AAVE is positioned for a potential move toward higher levels if it sustains above the pivot zone. Traders should monitor the price action around key resistance areas closely. This analysis is not financial advice. Investments are subject to market risks.
Aave Weak Higher High, 5X SHORT—192% PotentialThe peak hit late September, on the 23rd, led to a small retrace. This retrace ended 4-November and was followed by a quick bounce. This bounce produced a higher high. I am calling this higher high weak because trading volume is really low compared to early September and late August and also because it reached only ~10% higher compared to the last high.
This price dynamic can be interpreted in two ways. (1) The up-move is not over and AAVEUSDT will continue to grow. (2) The pull-back is over and a drop comes next.
Both can be traded with a tight stop-loss.
Full trade-numbers below:
___
SHORT AAVEUSDT
Leverage: 5X
Entry levels:
1) $200
2) $185
Targets:
1) $175
2) $165
3) $155
4) $145
5) $135
6) $122
7) $117
Stop-loss:
Adjust to your own risk tolerance
Potential profits:192%
Capital allocation: 3%
____
Remember to do your own research and planning before trading.
This is not financial advice.
Thanks a lot for your support.
I am wishing you health, wealth, profits and good luck.
Namaste.
Double Top in This Coin.#cryptocurrencyHello Trader's
Here is some update on Other Crypto Currency #Aave
Double Top Pattern Founded..
Selling condition Is not found just Wait for 30-45 minutes
From the post timing
And if you Know which trap level I'm talking about
Then comment down
This is for Only Learning Purpose
Aaveusdt2nd most trusted project on etherum
Even the us government was loaning Capitol on Aave
Aths next year...
Ethereum season and defi officially starts with trumps election
There can be no trust in a global economy whilst the American people are so fallible to marketing practices. (Boomer generational majority has locked this in unfortunately)
AAVE LONG IDEA - AAVE Coin Swing Long OpportunityAAVE is a coin I monitored closely during Summer 2024. While most altcoins were making new lows, AAVE was accumulating and showed resilience, which suggested to me that it might outperform others in the 2024-2025 altcoin bull season.
Technical Analysis: Price accumulated within the monthly demand zone throughout Summer 2024. It finally took off, breaking the weekly structure and creating strong bullish momentum on the weekly and daily charts.
Currently, price is retracing to the weekly demand zone responsible for the structural break, which is also supported by the monthly demand. This level appears strong to me.
I anticipate a slight retracement to grab daily swing liquidity before taking off from that area, which aligns with the Fibonacci golden entry level, adding further confidence.
I’ll be watching for LTF confirmations to enter the trade.
#AAVE/USDT#AAVE
The price is moving in a descending channel on the 12-hour frame and is sticking to it well
We have a bounce from the lower limit of the descending channel and we are now touching this support at a price of 134
We have an upward trend on the RSI indicator that is about to be broken, which supports the rise
We have a trend to stabilize above the moving average 100
Entry price 152
First target 164
Second target 182
Third target 203
AAVE is going to reach 200$Now, as you can see, AAVE is in a cup and handle pattern on the weekly timeframe. This can be an incredibly strong signal for a price increase. If the breakout happens, AAVE's price could reach $243 in the new year, which is not far-fetched, just like the AB=CD pattern.
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✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟!
⚠️Things can change...
The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
AAVE seems bearishEURONEXT:AAVE made a fake hitting 180$ and fall back again to its sideways trend, #AAVE got rejected from the resistance of the trend from 170$ and made a wick at 130$, I'll open short trade from 146$-148$ with the stoploss at 152$.
i'll share the targets after the trade open. it could fall to 120$.