AAVE's TVL Growth Indicates Strong Demand for AAVE DeFi Services

AAVE's Total Value Locked (TVL) has been experiencing rapid growth, marking a substantial surge from 2021 through 2025.

Aave (AAVE) has seen its Total Value Locked (TVL) rapidly grow, especially seen in 2021 through 2025. This upward trajectory is a testament to the increasing popularity and trust in the Aave decentralized finance (DeFi) platform.

As TVL rises steeply, it’s an indication that more funds are being locked into Aave’s lending and borrowing services. This is a direct result of more investors gaining confidence in the platform.

The surge in TVL could be attributed to both individual and institutional interest, which may propel the price of AAVE to new highs as more liquidity is injected into the ecosystem.

Aave’s TVL has seen a marked increase, particularly after 2023, as shown by the vertical spike in the chart. This growth suggests that more funds are being locked into Aave’s lending and borrowing services, a clear sign that more investors are gaining confidence in the platform.

The surge in TVL could be attributed to both individual and institutional interest, which may propel the price of Aave to new highs as more liquidity is injected into the ecosystem.

The chart’s sharp upward movement signals Aave’s strengthened position within the broader DeFi market. The rise in TVL is often linked with greater platform adoption, suggesting that Aave’s protocols are increasingly preferred by DeFi users.

As the TVL continues to surge, the expectation is that Aave will attract even more liquidity, potentially driving the token’s value.

Aave Open Interest Increase Indicates Positive Market Outlook

Moreover, Aave’s open interest (OI) is also rising in tandem to its rising TVL. With regard to latest data, Aave’s total OI is presently recorded as $185.4 million, with a recent 24 hour increase of 2.26%.

Increase in open interest is an important indicator of rising the number of traders that are engaging with Aave’s market.

The increase in OI aligns with the growing TVL, further confirming that Aave is gaining traction not only in terms of liquidity but also in trader interest. This rise in activity could also contribute to the price of Aave seeing continued upward momentum.

What’s Next for Aave? Key Resistance and Target Levels

Looking ahead, Aave is showing signs of forming a bullish reversal. The chart indicates a potential double-bottom pattern, suggesting that the price may have reached a key support level. Aave is currently trading at $184.55 with a 4% price surge in the last 24 hours.

Several technical indicators also support the bullish outlook. Relative Strength Index (RSI) currently stands at 46.90 indicating the price yet has more to go before reaching overbought conditions. A Chaikin Money Flow (CVD) reading of 5.76K provides positive buying pressure while the readings of the MACD line above the signal line is another indication that prices could be bound for an upward movement.

However, market analyst CW8900 predicts a strong upward momentum for Aave after the token successfully retested a breakout from the falling wedge pattern. For the short term, Aave is predicted to gradually rise to the first important resistance level at $240. If this resistance level is breached, Aave could rally towards its next target price at $320.