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AAVE Crypto Signals Bearish Outlook Despite Protocol’s Growth

  • AAVE breaks below the Bull Market Support Bands signifying stronger bearish momentum.
  • AAVE tripled in value in the last year, making it the top performer amongst DeFi protocols with over $1 billion in market cap.
  • AAVE hits $20 billion TVL and $12 million revenue amid launch of V3.3 with token buy back mechanism.

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.

AAVE bull market support BMSB | Source: INTO THE CRYPTOVERSE

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.

DeFi protocol chart showing revenue; Source: Defillama/x

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.

AAVE TVL over revenue chart ; Source: DefiLlama

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.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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lennox gitonga
lennox gitonga
Lennox is a professional financial market analyst who's enthusiastic about blockchain, cryptos, and web3. He started blogging about cryptos back in 2019 and has since never looked back. His work revolves around looking at crypto-projects analytically on a technical and on-chain level, while also making sure it's palatable to the general audience.