Key Insights
- Aave V3 surpassed $100 million in deposits on Monad within 48 hours of launch, highlighting strong early demand.
- AAVE price is approaching the $100 level as bullish momentum builds alongside growing DeFi adoption and institutional interest.
- Deposits into Invesco’s tokenized Treasury fund on Aave jumped 300% in Q2, strengthening the protocol’s real-world asset narrative.
AAVE price approached the $100 level as Aave’s new Monad market crossed $100 million in deposits within 48 hours. The rapid growth strengthened the protocol’s expansion case, though incentive spending complicated claims of fully organic demand.
Institutional activity also supported the broader narrative. Deposits of USTB, a tokenized U.S. Treasury fund managed by Invesco, rose sharply on Aave during the second quarter.
AAVE Price Tracks $100 Million Monad Launch
On 3 July, Aave deployed its V3 lending protocol on the Monad chain, launching with 12 supported assets, including GHO, USDT0 and cbBTC. Today, that protocol surpassed $100 million in deposits within 48 hours of going live.
Deposits crossed $75 million in the first day alone, fueled by $15 million in incentives from the Monad Foundation.
The deployment brought the full Aave V3.7 features of lending, borrowing, and GHO to the Monad chain, with initial support for 12 assets. Monad’s total value locked (TVL) on the chain reached a new all-time high of $477 million.
This underscored a successful and explosive debut, with Aave grabbing a huge early share.
While this initial growth was exciting, some of it was incentivized. The real test is whether Monad can continue on the same trajectory over the long term.
Monad is also expanding its distribution through MetaMask, which chose it as the home network for its new Money Account.
AAVE Price Turns Bullish, Eyes $100 Target
Following the bullish news of the successful launch on Monad, AAVE price bounced back with conviction. The AAVE price chart shows AAVE trading around $96 recently after testing higher levels near $97.41.
The token has climbed from the June lows and could potentially break structure to the upside if the momentum continues.
AAVE price action formed higher lows since mid-June, as it pushed above key Fibonacci levels to a $99.28 high. This is despite the overall heavily bearish market.
After a short pullback, AAVE price just bounced off the 0.382 retracement zone and now eyes $99.28 as the next barrier to break.
The arrow on the chart points toward the 0.618 Fib extension around $117, with intermediate resistance noted near $105 and 99.28. The recent green candle spike confirms buyers defended the move, and the lack of sell pressure shows AAVE bullish sentiment is prevalent.
Additionally, there is currently heavy bullish sentiment across futures markets for AAVE with $90 million in Longs compared to $80 million in Shorts in the 4-hour timeframe
Coinglass data shows retail traders on Binance have been increasingly bullish judging by the rising L/S ratio. However, whale accounts across Binance and OKX don’t think this move is sustainable. Most of them have been shorting AAVE as their L/S ratio dropped over the last 24 hours.
The imbalance between retail and whales accounts could explain why, after such an impulsive move to the upside, there seems to be almost no profit-taking pullbacks. Whichever of the two sides wins the tug will dictate the direction of the AAVE price.
AAVE crypto has shown strong monthly gains despite broader pressures. Volume has supported the push, and the chart setup gives bulls clear upside targets if momentum holds. A clean break above $100 could accelerate the run as Monad hype spreads.
Invesco’s Tokenized Treasury Fund Deposits Jump 300% on Aave in Q2
Meanwhile, even institutions want a piece of Aave as deposits of Invesco’s tokenized U.S. Treasury fund (USTB) into Aave surged roughly 300% quarter-over-quarter in Q2.
This move has served to strengthen Aave’s real-world asset narrative and added steady capital to the protocol.
Aave has combined proven lending infrastructure with a high-performance chain and has delivered instant TVL growth. Incentives have helped kickstart liquidity, but the speed of adoption shows real demand.
The protocol continues to lead DeFi lending, with the Monad chapter kicking off strong. It’s only a matter of time before price fully catches up with the fundamentals.
