Key Points
- Aave protocol’s TVL recorded a brand new ATH at $22.24 billion.
- Despite a big surge in AAVE’s value immediately, it nonetheless has to climb round 35% to achieve its earlier ATH.
Aave Protocol’s metrics have reached a brand new ATH, however its value continues to be down from its earlier historic excessive recorded in 2021.
Aave TVL Reaches a New ATH
Aave’s complete worth locked (TVL) reached a brand new ATH at $22.24 billion on December 12, based on DeFiLlama data. Its earlier ATH was recorded in October 2021 at round $19 billion.
The similar knowledge revealed that as of yesterday, AAVE’s value was nonetheless 50% down from its earlier ATH recorded in May 2021, above $572.
AAVE Price Is Up By 35% immediately
At the second of writing this text, AAVE is buying and selling at round $375, up by roughly 31% immediately, after reaching $376 earlier. The coin has a market cap of $5.6 billion.
During its 2021 ATH, AAVE reached a market cap of round $7.3 billion whereas its TVL was decrease in comparison with immediately’s numbers.
AAVE Potential Price Triggers
AAVE’s value could possibly be pushed upward by extra components.
Aave Deposits
Aave’s deposits rose from $12 billion in January to over $32.5 billion by December, mirroring elevated liquidity in DeFi. Only on December 5, the deposited quantity in Aave surpassed $2 billion based on Dune data.
Revenue Growth
Aave income additionally skilled a rise this yr at over $145 million, up by virtually 70% in comparison with the earlier yr. Fees had been over $865 million with a 66% enhance in comparison with final yr, Token Terminal data exhibits.
Revenue development displays elevated engagement with the platform.
Aave’s Potential Compared to Other Banks
Aave’s valuation metrics spotlight its excessive potential in comparison with conventional banks.
For occasion, HDFC Bank in India held $300 billion in deposits just a few days in the past, buying and selling at a valuation of $171 billion, and yielding a valuation-to-deposit ratio of 0.57. Aave’s valuation-to-deposit ratio was 0.13 as of December 9.
Trump Family Buys AAVE
Also, Lookonchain knowledge revealed earlier immediately that the Trump household crypto venture World Liberty Financial is shopping for ETH, LINK, and AAVE.
Earlier, Lookonchain revealed that their pockets spent 1 million USDC to purchase 3,357 AAVE at $297.8 billion.
AAVE’s Price Expected to Surge to New ATHs
An increase in TVL for the Aave protocol and different indicators talked about above ought to push the value increased. BlockBeats additionally talked about that in comparison with 2021, the entire provide of stablecoins can be considerably increased, which offers momentum for DeFi.
As of December 21, the entire market cap of stablecoins was over $202 billion, DeFiLlama knowledge exhibits. In 2021, it was round $187 billion, based on the identical knowledge.
All these metrics ought to push AAVE’s value increased to new ATHs, particularly contemplating the favorable surroundings for the general crypto trade as properly.
Also, the debut of the altcoin season a month in the past might carry extra liquidity to the crypto market as traders’ curiosity will increase.
2025 will carry a brand new administration within the US with extra crypto-friendly insurance policies, one other issue that may assist the rising adoption of digital property, and that already fuels bullish strikes out there.
Aave is a decentralized finance protocol that enables folks to lend and borrow crypto.
