AAVE Price Risks Drop to $230 Despite Strong DeFi Growth

  • Analyst warns AAVE could fall toward $230 if the pattern completes.
  • Aave’s $60B deposits rival top U.S. banks by total assets.
  • Protocol revenue hits $500,000 daily, strengthening DeFi’s growth trajectory.

Aave is showing technical weakness even as it posts strong fundamentals. Crypto analyst Ali Martinez pointed to an “M pattern” on Aave’s daily chart. 

The token traded near $310 on August 15 after failing to cross $330 resistance. By August 18, AAVE had fallen to $285, confirming the bearish setup. 

Martinez stated that if the pattern completes, the token could drop toward $230. He identified support levels at $294 and $278.  A breakdown below those zones may accelerate losses toward the projected $230 target.

Deposits Place Aave Among U.S. Banking Giants

Despite the chart concerns, Aave’s fundamentals remain strong. Analyst Mhonkasalo noted the protocol now holds more than $60 billion in deposits. 

That figure would rank Aave among the top 40 banks in the United States by assets. The milestone highlights the rapid expansion of decentralized finance platforms. 

Mhonkasalo added that the sector may soon witness DeFi’s first trillion-dollar protocol. Observers pointed out that the comparison to traditional banking underlines the changing financial landscape.

Total deposits across lending protocols have also surged. Analyst Satyam Singh reported that combined deposits reached $100.2 billion, up from $32 billion a year earlier. 

The 3.13× increase underscores rising adoption of decentralized credit markets. Within this growth, Aave leads the sector with $64.6 billion in total value locked, maintaining a clear advantage over competitors.

Community member superchillen eth/acc expressed optimism, predicting that AAVE could reach $1,000 before year-end.

Revenue Growth and Market Momentum

Aave’s financial performance has also strengthened. Token Logic data showed that on August 16, 2025, the protocol generated nearly $500,000 in daily revenue. 

Revenues have risen steadily in recent months, signaling consistent demand for lending services. Analysts expect momentum to build as real-world assets are integrated through Horizon and secured by Chainlink technology.

Commentator Marcos Crypto described Aave as “on fire,” citing the sustained increase in revenues and deposits. Traders noted that strong financials may help support long-term growth even if near-term price action weakens. 

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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