Aave (AAVE) Price Prediction 2024/2025/2030

Aave is a decentralized finance protocol that allows users to lend and borrow cryptocurrencies. AAVE is the native token of the Aave protocol.

Decentralized finance (DeFi) protocol Aave has seen its treasury grow by $6 million in one night due to liquidations triggered by yesterday's market downturn, according to its founder Stani Kulechov.

In a series of X (formerly Twitter) posts, Kulechov highlighted the gains made by Aave's treasury as a result of the liquidations.

Aave's platform allows liquidators to sell a user's collateral when their positions become risky. This typically occurs when someone uses a volatile asset like Ether as collateral and borrows stablecoins or other cryptocurrencies against it. If the value of the collateral drops, Aave enables liquidators to sell it to cover the debt.

Renowned crypto analyst Michaël van de Poppe also noted Aave's achievement during the recent downturn, even mentioning it as one of the “significant events” in the market yesterday.

"DeFi is likely taking off," Van de Poppe added.

Moreover, data from a Dune dashboard on Aave V3 Ethereum activity confirmed the high user activity, showing 17 liquidation events on August 5. Additionally, there were 2,127 deposits, 985 repayments, and 614 withdrawals. These figures mark the highest user activity on the platform since August last year.

Aave's native token price performance also reflected its operational success. Despite dropping to $79.15 on August 5, AAVE's price rebounded to $103.92 within 24 hours, reflecting a 15.1% increase.

Crypto analyst Javon Marks also commented on Aave's strength, highlighting its breakout from a key resistance trend and anticipating a potential surge to $628.5.

"With this target, an over 513% uphill run to reach it can take place, and pullbacks may only support this process," Marks explained.

Furthermore, data from Token Terminal showcases Aave having the most interest among traders and investors for the last 30 days. This is evident in the crypto lending market sector's monthly trading volume among governance tokens. Token Terminal's chart shows that AAVE's monthly trading volume nearly reached the $5 billion mark over the reporting period.

However, Aave's total value locked (TVL) has seen a slight decrease, now sitting at $10.59 billion according to DefiLlama, compared to $11.57 billion yesterday.

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