Aave Approaches Major Breakout as Total Value Locked Surpasses $30 Billion Milestone

Aave’s Price Rallies Amid Soaring Protocol Activity

Aave (AAVE), a leader in the decentralized finance (DeFi) space, is on the verge of a significant breakout above the $330 level after posting consistent gains in recent weeks. As of press time, AAVE is trading at $329, up 6% in the last 24 hours and marking an 18% rise over the past month. Despite this bullish momentum, the token remains around 50% below its 2021 peak of $661. The recent rally aligns with increased on-chain activity and robust growth across the protocol.

Total Value Locked Hits Record High

According to the latest figures from DefiLlama, Aave’s total value locked (TVL) has topped $30 billion for the first time—a remarkable 57% increase since the start of the year when TVL stood at approximately $19 billion. This surge in locked assets underlines growing trust in the platform. Moreover, Aave’s revenue streams have strengthened, with monthly protocol fees rising from $30 million in April to $40 million in May, and reaching $48 million in June. By mid-July, total fees collected had exceeded $1.4 billion.

Key Developments Fueling Aave’s Growth

Several significant upgrades and initiatives have helped power Aave’s resurgence. During the Ethereum Community Conference on June 30, Aave’s founder, Stani Kulechov, unveiled the anticipated Aave V4 upgrade. This new version promises a unified liquidity layer, support for cross-chain lending, advanced dynamic risk controls, and deeper integration with GHO, Aave’s native stablecoin. Analysts suggest these enhancements could help propel AAVE toward the $400 mark if user adoption accelerates.

Aavenomics 2.0 and New Collateral Options

Further bolstering the ecosystem, Aave Labs revamped its tokenomics in April by updating “Aavenomics” and introducing a token buyback program aimed at optimizing supply and long-term value. In May, Aave also announced it would accept Uniswap (UNI) V4 LP tokens as collateral, giving DeFi users more flexibility to borrow against their liquidity positions.

Technical Analysis: Momentum Builds for Potential Breakout

On the technical front, AAVE currently holds above key moving averages—the 10-day EMA at $308 and the 20-day EMA at $294. The price is hovering near the upper edge of the Bollinger Band around $331, typically an indicator of strong momentum. With a relative strength index (RSI) at 68.7, the token is nearing overbought territory, while the MACD continues to flash bullish signals.

Although a temporary slowdown could see AAVE revisit support levels around $306 or $288, a decisive move above $330 may open the path toward $350 and beyond. Given Aave’s expanding TVL, positive protocol upgrades, and renewed ecosystem interest, the project is well positioned for further growth in the broader cryptocurrency market.