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AAVE

Aave (AAVE) Price Jumps by 25% in 24 Hours: Key Reasons

by admin May 20, 2025

AAVE price spikes by 25% amid market apathy: Reasons
Aave (AAVE) now responsible for 20% of all DeFi TVL

AAVE, a core cryptocurrency token of Aave, a leading DeFi protocol on EVM blockchains, outperforms all of the major cryptos. While the market benchmark is in the red, the AAVE price has logged a 25% overnight price increase. AAVE crypto might benefit from the U.S. GENIUS Act gaining support.

AAVE price spikes by 25% amid market apathy: Reasons

Today, May 20, 2025, AAVE, a native governance crypto of the eponymous blue-chip DeFi, has seen its price spiking by 25% in less than one day. The AAVE price jumped from $213 to a three-month high over $267. AAVE becomes the best performer in the top 100.

Image by CoinGecko

On social media, the cryptocurrency community attributed the success of AAVE to the GENIUS Act, which eases crypto regulation in the U.S. and makes it less hostile to DeFi and stablecoins.

Affected by this optimism, other DeFi tokens are also outperforming today. For instance, CRV crypto of Curve Finance DeFi is the second best performer with an 8% upsurge, while JUP of Solana’s DeFi Jupiter is up by 5%.

By contrast, the market benchmark is in red today. The total capitalization of the cryptocurrrency segment dropped by 1.5% overnight, while Bitcoin (BTC) is only up 0.3%.

Aave (AAVE) now responsible for 20% of all DeFi TVL

Ethereum (ETH), the second-largest cryptocurrency, is up by 1%, while other majors XRP, BNB, DOGE and ADA are all losing value.

Aave (AAVE) also accomplished a number of records in its total value locked (TVL) metrics. After a recent upsurge, its TVL hit a new all-time high over $30 billion.

That said, it exceeds all CeFi TVL combined and is equal to an unbelievable 20% of aggregated TVL of all DeFis in Web3.

Many analysts see the run of AAVE as the first signal of altcoin season incoming. Optimists see the token reaching $280-$200 in the near future.

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May 20, 2025 0 comments

NFT Gaming

Aave Surges as Stablecoin Bill Clears Key Hurdle in US Congress

by admin May 20, 2025

In brief

Aave’s token surged 20% as Congress advanced the GENIUS Act, a bill that could bring regulatory clarity to stablecoins.
The protocol, which supports lending and borrowing of major stablecoins, recently surpassed $25B in Total Value Locked.
AAVE is up over 90% in 30 days, outperforming major altcoins and the broader crypto market.

The native token of DeFi lending protocol Aave has surged by double-digit gains on the day, rallying alongside a key procedural vote in Congress on the long-anticipated GENIUS Act.

If enacted, the bill would provide long-awaited regulatory clarity for stablecoins—a sector in which Aave is deeply embedded.

Specifically, the act would allow banks and other companies to issue their own stablecoins provided they meet certain requirements, adding to further speculation it could bring about wider institutional adoption.

The bill now needs only one more vote to pass.

Aave plays a significant role in the stablecoin economy by allowing users to lend, borrow, and earn yield on stablecoins like USDC, USDT, DAI, among others.

The protocol also introduced its own overcollateralised stablecoin, GHO, in 2023, designed to keep value capture within the Aave ecosystem.

Its namesake token has increased by 20% to $262 over the past 24 hours, and more than 90% over 30 days, CoinGecko data shows.

Not only has the altcoin outperformed the overall crypto market—up just 0.2% in the past 24 hours—it’s also surpassed the other best-performing altcoins.

Though it’s still some way off its recent peak of $383.49 from December 28, 2024.

Still, the protocol’s Total Value Locked reached an all-time high of over $25 billion this month, surpassing market leaders like Lido (LDO) and EigenLayer (EIGEN), indicating growing interest in the token’s ecosystem, per DeFi Llama data.

The renewed interest in Aave also follows strategic moves by World Liberty Financial, the Donald Trump-backed crypto venture, which in December acquired more than 3,300 AAVE tokens as part of a $5 million bet on DeFi assets.

The project’s community later approved launching Aave v3, offering borrowing and lending services using ETH, WBTC, USDC, and USDT.

Under the arrangement, AaveDAO receives 7% of WLFI’s circulating token supply and a 20% share of protocol fees—an uncommon revenue-sharing deal that further integrates the protocol into one of the most high-profile U.S. political crypto initiatives.

That tie-in, paired with growing institutional attention around the GENIUS Act, appears to be fueling investor conviction in Aave’s longer-term regulatory and adoption outlook.

Elsewhere in the market, Ethereum (ETH) rose 4% on the day, Chainlink (LINK) gained 3.2%, and Solana (SOL) added 2.6% to trade at $166, CoinGecko data shows.

Edited by Sebastian Sinclair

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May 20, 2025 0 comments

NFT Gaming

AAVE rallies over 25% as a golden cross pattern nears

by admin May 20, 2025

AAVE rallied as much as 25% today, fueled by growing optimism across its ecosystem and a spike in trading activity.

Aave (AAVE) soared to an intraday high of $269 on May 20 afternoon Asian time, marking its highest level since February and making it one of the top-performing cryptocurrencies in the market right now. From its April low, AAVE has now climbed more than 132%.

The surge came alongside a spike in trading volume. According to data from crypto.news, over $800 million worth of AAVE changed hands today, its most active day since early March.

Meanwhile, AAVE’s futures open interest hit an all-time high of $569 million, reflecting strong demand from derivatives traders. Its positive funding rate for two straight weeks also suggests the majority of the market is still betting on more upside, with long traders currently paying short traders.

Traders appeared to welcome progress on the GENIUS Act, which recently cleared a key procedural vote in the U.S. Senate. The bill proposes a regulatory framework for stablecoins, an area critical to DeFi protocols like Aave.

Given Aave’s reliance on stablecoins like USDC, DAI, and its native GHO, the prospect of regulatory clarity could encourage more institutional participation and bolster confidence across its ecosystem.

AAVE also got a boost from solidifying its lead as the top DeFi protocol by TVL. According to DeFiLlama, its total value locked jumped nearly 40% in the past month to reach $40.7 billion, far surpassing Lido, which has $23.3 billion.

This growth is translating into real revenue. AAVE has raked in over $250 million in fees year-to-date, putting it among the most profitable protocols in the space.

Momentum on the technical front is also being matched by a rise in daily active addresses, which have spiked 57% over the past two days.

Source: Santiment

At the same time, its weighted social sentiment has also flipped positive, a sign that market participants are growing bullish on AAVE’s short-term outlook.

Potential golden cross in development

On the 1-day/USDT chart, the Aroon Up indicator is at 100% while Aroon Down sits at 0%, meaning bullish momentum is dominant. The Chaikin Money Flow Index is reading 0.26, which signals more capital flowing into the token.

AAVE price, Aroon and CMF chart — May 20 | Source: crypto.news

A golden cross also looks imminent on the daily chart, as AAVE’s 50-day and 200-day moving averages inch closer to a crossover, often considered a bullish signal.

AAVE 50-day and 200-day EMA chart — May 20 | Source: crypto.news

The token is nearing the 61.8% Fibonacci retracement level at $271.35. A clean breakout above this level could pave the way toward the 50% retracement level at $347.19, roughly 30% higher than current levels.

On the flip side, if a pullback happens, key support lies near $226.45, which could serve as a solid bounce zone before the uptrend resumes.

At press time, AAVE was trading around $267 per coin.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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May 20, 2025 0 comments