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.

Hot this week

Litecoin MWEB Adoption Jumps as Price Defends $85 with Higher Lows

Litecoin’s MWEB upgrade improves privacy and scalability with steady...

Bitcoin Shows Recovery Potential After $220M in November USDT Outflows

Bitcoin price dipped 30% in November but shows signs...

Arbitrum Tokenized Assets Hit 800, $10M Value Milestone

Tokenized assets on Arbitrum surge to nearly 800, with...

Dogecoin Tests $0.14 Support 5 Times in a Row: Break or Bounce?

Dogecoin has hammered the $0.14 support level five consecutive...

Crypto Tony Eyes FET Bounce at $0.27 Lows

Influencer Crypto Tony waits for a rebound in FET...

Topics

Litecoin MWEB Adoption Jumps as Price Defends $85 with Higher Lows

Litecoin’s MWEB upgrade improves privacy and scalability with steady...

Bitcoin Shows Recovery Potential After $220M in November USDT Outflows

Bitcoin price dipped 30% in November but shows signs...

Arbitrum Tokenized Assets Hit 800, $10M Value Milestone

Tokenized assets on Arbitrum surge to nearly 800, with...

Dogecoin Tests $0.14 Support 5 Times in a Row: Break or Bounce?

Dogecoin has hammered the $0.14 support level five consecutive...

Crypto Tony Eyes FET Bounce at $0.27 Lows

Influencer Crypto Tony waits for a rebound in FET...

Arthur Hayes Bitcoin’s $80K Floor Holds Amid Fed Pivot

Arthur Hayes declares Bitcoin bottomed near $80K last week,...

Binance Stablecoin Reserves Hit Record $51B as Inflows Surge

Binance’s stablecoin reserves reached an all-time high of $51.1...

Ethereum Plans Targeted Optimization for 2025 with Increased Gas Limits

Ethereum is shifting to targeted optimization in 2025, raising gas limits and fees for resource-heavy tasks.
spot_img

Related Articles

Popular Categories

spot_imgspot_img