Aave [AAVE] has been heading upwards steadily over the recent weeks, hitting its peak price in over a year during the latest trading session. Analysis of on-chain data reveals a strong bullish trend, further supported by heightened Total Value Locked (TVL) activities.
Aave Establishes a Fresh Annual Price Milestone
Aave closed the most recent trading session at around $172 in the daily timeframe, registering an almost 6% surge. This price level hasn’t been revisited since May 2022, making it a significant achievement for the digital currency.
The recent upsurge has laid down a new base at $136, with a more enduring support level around $128, as highlighted by its short-term moving average (yellow line).
The Relative Strength Index (RSI) has been staying above the neutral mark for more than a month, indicating a consistent bullish trend since August. At present, the RSI is hovering around 70, stepping into the overbought zone following the recent price hike.
Market Capitalization Reflects Price Patterns
AAVE’s market capitalization has risen in parallel with its price surge. As per CoinMarketCap, the market cap now surpasses $2.5 billion, which exhibits a substantial leap from around $882 million a year ago.
The most remarkable growth took place around August, surging from approximately $1.3 billion to $2 billion.
Bullish Indications from Aave’s On-Chain Data
On-chain metrics demonstrate an increased accumulation of AAVE over the past few months. The total count of holders with a non-zero balance ascended from roughly 168,000 to about 170,000 before slightly receding to 169,000.
This uptick implies an uptick in recent asset purchases across more wallets.
Further analysis unveils intensified activity among AAVE sharks and whales. There was an increase of over 1,000 wallets holding between 100 and 1,000 AAVE tokens.
Moreover, wallets holding between 100,000 and 1 million tokens grew by two in the last three days, indicating noteworthy accumulation by significant holders.
TVL Sees Significant Expansion
Based on a Santiment report, Aave’s heightened activity is partially attributed to a loss of confidence in Curve Finance, which faced a substantial security breach in the summer of 2024.
Furthermore, Aave’s expansion into Layer 2 (L2) platforms has also contributed to the surge in activity.
Analysis of Aave’s TVL on DefiLlama validates this growth, nearing its 2021 levels. The TVL plummeted to around $7 billion in May 2022, but surged to nearly $6.38 billion at its peak in 2023.
By 2024, the TVL soared to over $13 billion in the current quarter. As of now, the TVL is approximately $12.4 billion.
Final Thoughts
Aave’s remarkable price performance alongside the bullish signals from on-chain metrics indicate a robust upward trend.
The escalating market capitalization, expanding holder count, and substantial TVL surge all indicate Aave’s fortified position that could persist for a considerable period.