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- $AAVE price jumps as exchange supply drops to a 3-year low, hinting at strong holding sentiment.
- Protocol fundamentals shine with record $26.42B TVL and consistent revenue.
- Bullish technicals signal $400 as the next potential price target.
Aave, the governance token for the protocol $AAVE, has been on its bull run, hitting a record high of $281 since February 2.
$AAVE Price Hits New Highs: Rally Extends Beyond $280
The bull run, which started on April 7 when the token traded at just $114.15. There is an increase of over 145% within less than two months. Both on-chain fundamentals and technicals seem to be underpinning this strong uptrend.
One of the strongest bullish indications is decreasing exchange balances of $AAVE. Santiment statistics show that there are now just 3.17 million $AAVE tokens held in centralized exchanges, down from 4.53 million in November 2023. That is the lowest exchange supply since February 2021 and can mean that $AAVE holders prefer to hold or stake $AAVE.
Rather than selling it. Lower exchange supply normally suggests diminishing sell pressure and increasing investor confidence.
Total Value Locked Surges Over 30% in One Month
Behind this sentiment is the record-high total value locked (TVL) of the Aave protocol. The protocol currently stores $26.42 billion in TVL, a 30% increase in the past 30 days. Increasing TVL is a signal of increasing user activity and overall optimism in Aave’s DeFi model.
$AAVE fee revenue is also stable, at $33.8 million in fees. Expected to date this month a touch higher than $33.3 million the month before. That stability also makes $AAVE one of the highest-revenue platforms on the decentralized finance landscape.
Staking is also increasing. The staking market capitalization has come close to being double that of last month and is now at $800 million from $454 million. Amongst Ethereum. Staked $AAVE price predicction is higher as low as 84,000 $ETH and is currently significantly over 300,000 $ETH, showing the increased trend of long-term holding strategies.
Even $AAVE’s in-house stablecoin, GHO, reached an all-time high of $265 million market cap, further validating the protocol’s growing ecosystem.
Next Target: $400
Technically, $AAVE price prediction has formed a golden cross on its day chart, where 50-day EMA has crossed 200-day EMA a classic bullish indication.
The Average Directional Index (ADX) has increased to 42, which suggests that the trend is strong. Moreover, a break above 38.2% Fibonacci retracement level suggests increased momentum, and the next significant target is at $400, which may log a further 45% return.