AAVE Crypto Signals Bearish Outlook Despite Protocol’s Growth

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

The 20-week SMA stood at $254.73, while the 21-week EMA was $246.92. AAVE previously rallied above $600 in 2021 before entering a prolonged downtrend.

Prices declined below the support bands in mid-2022, confirming bearish control.

Throughout 2023, AAVE crypto traded mostly below $100, struggling to reclaim bullish momentum.

Temporary rallies met resistance near the 20-week SMA and 21-week EMA, rejecting further upside.

AAVE only crossed above the bands in late 2023, suggesting a potential trend reversal.

By early 2024, prices steadily climbed, breaking above $200 and using the support bands as a base.

The bullish trend accelerated, with AAVE surpassing $400 in early 2025.

However, the recent breakdown below support bands could indicate a weakening uptrend.

If the price remains below the 20-week SMA and 21-week EMA, further downside could follow.

Reclaiming the bands would be necessary for renewed bullish momentum.

The market’s reaction in the coming weeks would determine whether AAVE continues higher or enters another corrective phase.

AAVE Crypto Tripled in Value Over Last Year

AAVE nearly tripled in value over the past year, making it the top-performing DeFi protocol with over $1 billion in market cap.

The price reached $280.3, with a market cap of $4.22 billion and a fully diluted valuation of $4.484 billion.

January recorded AAVE crypto’s highest monthly revenue, reflecting a surge in DeFi activity.

Annualized revenue stood at $138.39 million, with fees reaching $739.39 million. Borrowed funds totaled $13.262 billion, indicating strong lending demand.

Revenue trends showed a significant recovery, with peaks surpassing $10 million in early 2025.

The chart illustrated a strong upward trajectory after a low period in 2023. If the trend continues, AAVE’s revenue could reach new highs.

Future growth would depend on DeFi adoption, lending demand, and broader market conditions.

AAVE’s ability to sustain high borrowing and fees would determine its trajectory.

AAVE Hits $20 Billion TVL and $12 Million Revenue

AAVE reached $20 billion in total value locked (TVL) and $12 million in monthly revenue following the launch of V3.3.

The upgrade introduced a token buyback mechanism, boosting investor confidence and increasing protocol efficiency.

TVL surged from below $5 billion in 2023 to over $20 billion in early 2025, AAVE crypto previously peaked above $15 billion in TVL in 2021 before declining below $5 billion during 2022’s DeFi downturn.

A gradual recovery in 2024 preceded the sharp breakout in late 2024.

Revenue spikes aligned with increased TVL, reinforcing AAVE’s profitability.

If the uptrend continues, AAVE could sustain higher revenues, depending on DeFi adoption and user activity.

Future price movements would depend on market conditions and the impact of V3.3’s token buyback.

AAVE crypto’s ability to maintain high TVL would determine its long-term sustainability.