AAVE, the second-largest cryptocurrency in decentralized finance, has performed well this year, hitting its highest level since 2022.
AAVE (AAVE) has soared to $160, up about 120% from its low this year, giving the company a valuation of over $2.5 billion.
AAVE’s DeFi TVL has skyrocketed.
The token has performed well due to a significant increase in network assets. The data shows: The total value locked in the ecosystem has jumped to over $12.1 billion.
This growth has made it the second largest player in DeFi after Lido, which has over $25 billion in staked assets, followed by EigenLayer, Ether.fi, and JustLend.
AAVE’s growth has also led to significant fees on the network, according to TokenTerminal., Total fees in the ecosystem this year have exceeded $287 million, making it the third most profitable entity in DeFi, behind Lido and Uniswap.
AAVE has seen a surge in price over the past few months due to increased whale activity. For example, several whales have made significant purchases, and most of the current holdings are followed by investors and retailers.
According to Nansen data, the number of smart money has declined slightly recently, but remains well above the June low of 71. The total balance held by these investors remains at 439,000.
The biggest smart money holds over 25,000 AAVE tokens worth $4 million, as well as other coins such as Ethereum (ETH), Pepe (PEPE), Ondo Finance, and Beam.
AAVE also surged as the Federal Reserve began cutting rates.. At its meeting on Wednesday, the bank decided to cut rates by 0.50% and hinted at further cuts. Lower rates could boost inflows to lending platforms such as AAVE and JustLend.
AAVE, Golden Cross Formation in July
AAVE’s surge also came after the 50-day and 200-day exponential moving averages crossed each other in July, forming a golden cross pattern.
It continued to form a series of higher highs and higher lows. Also, the coin flipped the major resistance level of $150 into support. It also surpassed the important point of $153.68, which was the high of March this year.
The most important thing is that AAVE formed a popular continuous symbol, the cup-and-handle pattern.
So, as the analyst below points out, there is a possibility that the token will continue to rise as the DeFi comeback continues. If this happens, the next target to watch will be $170.