Aave Surges 5.8% as TVL Hits Record $26.47 Billion

Aave ($AAVE) has experienced a significant surge, climbing 5.8% in the past 24 hours, with its price testing the $300 mark. This upward momentum is supported by a bullish pennant formation, which suggests a potential push toward $325 if buyers maintain key support levels. The Total Value Locked (TVL) in Aave's protocol has reached a record high of $26.47 billion, underscoring its dominance in the decentralized finance (DeFi) space.

Currently ranked 28th among all cryptocurrencies, Aave's market performance is noteworthy, especially given the intense competition within the DeFi ecosystem. The TVL of $26.47 billion is higher than the combined TVL of 30 competitors across 17 blockchains, highlighting Aave's leadership position. This milestone reflects growing trust in Aave's security and efficiency, as more users lock assets into its liquidity pools.

Looking ahead, market analysts are optimistic about Aave's potential. There are strong speculations that the AAVE token could soon break past the $300 mark, potentially reaching $325, and may even rally further towards $400. Traders should note $295 as a critical support level, a point that could determine whether the uptrend resumes or consolidates. Aave leads DeFi in flash loan volume, processing over $7.5 billion in the first half of 2025, and maintains at least $1 billion in TVL across four major networks: Ethereum, Arbitrum, Base, and Avalanche.

Beyond on-chain metrics, Aave is shaping the future of finance at the institutional level. Founder Stani Kulechov recently held high-profile discussions at the White House and Capitol Hill. These meetings signify a growing recognition of DeFi’s potential by U.S. policymakers, who expressed optimism about fostering innovation in the digital asset space and positioning the U.S. as a leader in crypto and DeFi policy. The discussion primarily focused on stablecoin regulation, particularly the GENIUS Act, which aims to clarify the legal framework for stablecoins, thereby reducing regulatory uncertainty and promoting broader adoption.

The AAVE/USDT 4-hour chart reveals a bullish pennant pattern that formed after a sharp rally from the $215 region. This continuation setup was developed between June 23 and June 29, with a brief consolidation period marked by converging trendlines. The pattern was confirmed as the price broke out of the pennant and extended toward higher levels. The target, projected from the height of the initial flagpole added to the breakout point, lies near $325. This technical breakout aligns with Aave’s record $26.47 billion TVL and growing institutional interest, reinforcing bullish conviction.

At press time, AAVE’s price action has reached $298.68, positioning it just below the psychological resistance of $300 and approximately 8.5 percent away from the projected objective. The MACD line confirms bullish momentum as it holds above the signal line, steadily climbing. Volume supports the move, consistent but not excessive. This suggests steady buying pressure rather than speculative frenzy. While the MACD’s positive trajectory reinforces strength, the lack of explosive volume indicates controlled accumulation. Buyers aren’t rushing; they’re building positions methodically.

The 15-minute volume footprint reveals mixed sentiment in the near term. At 10:30, a significant positive delta of 474 appeared, backed by 1.05K in total buy volume compared to 572 in sell volume, suggesting short-term buying strength. However, this was followed by a sell-heavy candle at 11:00, where the delta turned negative at -297, and sell volume outpaced buy volume (1,120 versus 826). The breakout was technically sound, but profit-taking near $300 has triggered fluctuations. The asset’s price dropped to $297.35, as indicated on the footprint chart, signaling early hesitation or potential consolidation. Traders should keep a close eye on the $300 resistance level. A confirmed break above it could spark a rally toward $325. However, if $295 fails to hold, a pullback may occur before another breakout attempt.