Aave remained in a tight range on Saturday, but a combination of strong technicals and soaring deposits means that it could rebound soon. Aave ( AAVE ), originally known as ETHLend up until September 2020, was trading at $353 at last check Saturday. It remains 370% above its 2024 lows. Source: CoinGecko Data shows that the total value locked in its network soared to a record high of 6.12 million ETH, or $5.12 billion. Another figure by TokenTerminal shows that the ecosystem’s net deposits are at a record high of $36 billion. That’s higher than the $10 billion in deposits it had during the same period last year. To end the year, Aave reached a new all-time high in deposits for the first time since 2021. With $35 billion in net deposits, Aave is now the largest DeFi protocol. https://t.co/TjXLfggJuN — Aave (@aave) January 1, 2025 This growth has made Aave a highly profitable player in the crypto industry. After all, total fees jumped to over $474 million in the last 12 months. Most importantly, the performance has been notable since competition from lending protocols like Morpho, Spark, Compound, Venus, and Save is rising. You might also like: Aave eyes bigger 2025 after net deposits hit all-time high Aave is now working on its V4 project, which will be the biggest upgrade on record. According to the proposal, V4 will combine a new architecture that enhances modularity and reduces governance overhead. It will also integrate with GHO, the Aave stablecoin, with over $146 million in assets. The upgrade will be launched in the second half of the year. Meanwhile, Nansen data shows that Aave tokens are leaving centralized exchanges, a bullish sign for the coin. Its total tokens on exchanges dropped by 2.43% in the last seven days to 5.3 million. Just 33% of all Aave tokens are in exchanges, meaning that many holders have a long-term horizon. AAVE tokens on exchanges | Source: Nansen Aave could soar to $500 Aave has bullish technicals. The chart above shows that the token bottomed at $71.41 in 2024 and has now moved above $300. AAVE chart | Source: crypto.news Aave has remained above the 50-day moving average, which is providing important support. Most importantly, the coin is forming a bullish pennant chart pattern comprising a long vertical line and a symmetrical triangle. This triangle is now nearing its confluence level. This often leads to a strong breakout. Therefore, if this happens, the initial target for the Aave token will be last year’s high at $400. A break above that level will point to more gains, potentially to the psychological point at $500. The bullish view will become invalid if the coin falls below the 50-day moving average. Aave, created by Finnish entrepreneur Stani Kulechov in 2017, is used for governance, staking, and other protocol-related functions. Read more: Can the Pepe coin price rise 35% as smart money holders sell?
