- Aave reached its highest price in over a year at around $172, indicating a strong bull trend.
- Total Value Locked (TVL) in the network increased to over $13 billion in 2024 and neared 2021 levels, driven by increased activity.
Aaf [AAVE] has been on a bullish trajectory in recent weeks, reaching its highest price point in more than a year during the last trading session. On-chain data analysis indicates a robust bull trend, further supported by increased Total Value Locked (TVL) activity.
Aave sets a new annual price record
In the daily time frame, AAVE closed the last trading session at around $172, marking an increase of almost 6%. This price level has not been retested since May 2022, making it a major milestone for the cryptocurrency.
Source: TradingView
The recent rise has set a new support level at $136, with longer-term support around $128, which is indicated by the short-term moving average (yellow line).
The Relative Strength Index (RSI) has remained above the neutral line for more than a month, indicating a continued bull trend since August. Currently, the RSI is hovering around 70 and entering the overbought zone due to the recent price surge.
Market capitalization reflects price trends
AAVE’s market cap has risen along with its price. According to CoinMarketCapits market capitalization now exceeds $2.5 billion. This is a substantial increase from a year ago, when it was approximately $882 million.
The most notable growth occurred around August, from about $1.3 billion to $2 billion.
Bullish signals from Aave’s on-chain data
On-chain indicators show increased accumulation of AAVE in recent months. The total number of holders with a non-zero balance increased from approximately 168,000 to approximately 170,000, after which there was a slight decrease to 169,000.
This increase indicates that more wallets have recently purchased the asset.
Source: Santiment
Further analysis shows increased activity among AAVE sharks and whales. The number of wallets holding between 100 and 1,000 AAVE tokens has increased by more than 1,000.
Furthermore, wallets holding between 100,000 and 1 million tokens have grown by two over the past three days, indicating significant accumulation by large holders.
TVL is experiencing significant growth
According to one Santiment According to the report, Aave’s increased activity is partly due to a loss of confidence in Curve Finance, which suffered a major security breach in the summer of 2024.
Aave’s expansion into Layer 2 (L2) platforms has also contributed to the increase in activity.
Source: DefiLlama
An analysis of Aave’s TVL op DefiLlama confirms this growth and brings it closer to 2021 levels. The TVL fell to around $7 billion in May 2022, but recovered at its peak in 2023 to around $6.38 billion.
In 2024, TVL rose to over $13 billion in the current quarter. At the time of writing, the TVL is approximately $12.4 billion.
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Conclusion
Aave’s impressive price performance and bullish signals from on-chain data indicate strong upside momentum.
The increased market capitalization, growing number of holders, and significant rise in TVL all point to Aave’s strengthening position that could continue for a while.