AAVE’s DeFi Metrics Are Surging, Yet Its Token Price Remains Over 50% Below Its ATH

AAVE's protocol metrics have surpassed previous ATH levels while its token valuation lags. This disconnect raises questions about what's holding the token back

Despite AAVE’s impressive DeFi metrics, its token price remains significantly below its all-time high, raising questions about the factors contributing to this discrepancy.

Protocol metrics of @aave already exceed ATH by wide margin but the price is still >50% below ATH.

Stablecoin supply also significantly higher compare to 2021 which power DeFi.

Higher pic.twitter.com/EiMZk0Anoj

According to the latest data from DeFiLlama, AAVE boasts a total value locked (TVL) of $38.578 billion, a market capitalization of $5.299 billion, and a current token price of $351.50.

Over the past 24 hours, AAVE recorded a trading volume of $1.965 billion, while staked tokens amount to $1.039 billion, comprising 20% of the platform’s market cap.

AAVE’s borrowing volume stands at $15.318 billion, cementing its role as a major liquidity provider in decentralized finance (DeFi).

The protocol’s revenue has also been strong, with fees totaling $618.97 million over the past year. Annual revenue reaches $117.94 million, while operating costs remain low at just $6.28 million annually.

AAVE Token Price Surges, Operating Costs Remain Low

The token price of AAVE has witnessed surges recently, with the AAVE/USDT trading pair rising by 30.83% to $359.84, having started the period at $125.73.

The price increase has sparked discussions among crypto enthusiasts, with some speculating about the potential impact of upcoming protocol upgrades and the broader adoption of DeFi.

Highlighting the strong momentum in AAVE’s price, Money Guru, a crypto analyst, pointed to the moving averages (MAs). The short-term MA is $292.32, the medium-term MA is $223.90, and the long-term MA is $170.93.

This article is strictly informational and does not provide legal, investment, financial, or tax advice. Please consult with a qualified professional before making any legal, investment, financial, or tax decisions.