AAVE Hits 3-Week High as DeFi Lending Booms

AAVE Price Soars, Reflecting DeFi Lending Market Growth

The native token of decentralized finance (DeFi) lender Aave (AAVE) reached a three-week high on Tuesday, climbing to over $290. This surge coincides with a significant upswing in the overall DeFi lending sector.

AAVE experienced considerable price volatility on Monday and Tuesday. After bottoming out at $277.57, it rebounded to $291.11, representing a 5% increase, according to CoinDesk Research's technical analysis.

Trading volume remained strong throughout this period. Significant spikes exceeding 2,000 units during the 12:00-12:13 breakout phase indicate robust buyer interest, confirming the recovery from earlier lows.

The price recovery suggests substantial buying support around $277.00-$280.00, potentially establishing key support levels for future price action.

DeFi Lending Market Explodes

This AAVE price increase reflects broader growth in the DeFi lending market. The total value locked (TVL) in the sector has soared to over $56 billion, surpassing even 2022 peak levels, according to DefiLlama data. DefiLlama data

Aave's Dominant Position

Aave is a major player in this growth, currently holding $26.4 billion in TVL across seventeen blockchains. This surpasses the combined TVL of the next thirty largest competing lending protocols, highlighting Aave's significant market dominance. Source

Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.

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