AAVE Eyes $670 Resistance as Multi-Year Bullish Pattern Holds Strong

Key Insights:

• AAVE respects a multi-year trendline, signaling potential breakout above $670 resistance.
• Internal DAO-Labs dispute centers around monetizing platform revenue from swaps.
• Aave holds $32B in TVL and generates over $100M annually despite internal challenges.

Aave ($AAVE), a leading decentralized finance (DeFi) platform, is currently showing signs of a strong bullish trend. With a current price of $186.10 and a 24-hour trading volume of $423 million, Aave’s performance remains resilient despite these internal challenges.

Strong Support for AAVE

Recent price action on AAVE shows a clear trend of higher lows. The weekly chart indicates a firm base formation, which suggests the token is preparing for a breakout. This long-term trend has caught the attention of traders, who believe AAVE could soon test higher price levels.

According to market analysts, “AAVE is respecting a multi-year trendline with consistently higher lows.” This indicates a robust and sustained uptrend, and many are watching closely for a breakout beyond the $670 resistance. If AAVE manages to break through this level, it could signal further bullish momentum.

Aave’s growth is not only influenced by its market performance but also by internal discussions over control

Aave’s Ongoing Debate Between DAO and Labs

Based on a recent dispute has emerged between Aave DAO and Aave Labs regarding the ownership and monetization of the platform. The conflict began when it was revealed that in-platform swaps were redirecting revenue that was originally meant for the DAO treasury to Aave Labs. 

Stani Kulechov, the founder of Aave Labs, believes that since Labs owns the consumer-facing platform, it should have the right to monetize as it wishes. However, Aave DAO representatives argue that the trust in the Aave protocol, asset management, and risk structure comes from the DAO, not just the interface.

Aave’s Financial Outlook

Despite these internal challenges, Aave continues to be a dominant player in the DeFi space. According to DeFiLlama data, the platform holds over $32 billion in total value locked and generates over $100 million in annual revenue. While the dispute over swap revenue is notable, it is a fraction of around 51% of Aave’s overall revenue.

The recent clashes between the DAO and Labs raise important questions about the future structure of Aave. Aave’s market position remains strong, with many continuing to support its decentralized model. As the debate unfolds, traders are keeping an eye on how these issues might affect the token’s price trajectory.