AAVE Captures 28% of DeFi Market Share with $40B TVL – Can It Hit $300?

Aave DeFi

Crypto Journalist

Anas Hassan

Crypto Journalist

Anas Hassan

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Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.

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June 24, 2025

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The decentralized lending protocol Aave (AAVE) has successfully reclaimed the $250 threshold following a robust 12% advance over the past 24 hours.

During early June, Aave achieved the $300 milestone for the first time in four months, leading market participants to anticipate a potential push toward $350. However, Aave experienced weakening momentum that drove the token to a session low of $213 on June 22.

This latest recovery above $250, reinforced by a substantial 53% increase in trading volume, has restored market confidence in Aave’s trajectory.

Aave Growing Dominance Sees It Command $24B of $110B Total DeFi Market Share

Beyond renewed trading interest, Aave’s expanding dominance within the DeFi ecosystem has strengthened investor conviction in the protocol’s fundamentals.

According to DeFiLlama, Aave commands $24 billion of the total $110 billion in assets secured across DeFi protocols, representing over 20% of the entire DeFi total value locked (TVL).

Aave’s lending operations alone account for approximately 40% of all DeFi activity on the flagship blockchain network.

Excluding stablecoin providers Tether and Circle, Aave stands among Ethereum’s top revenue-generating protocols, generating over $586 million in annualized fees and $84.8 million in annual revenue.

Aave maintains clear market leadership within the lending protocol category with more than $16 billion in outstanding borrowed assets.

Recently, Stani Kulechov, founder of Aave Labs, disclosed that Aave’s comprehensive on-chain liquidity infrastructure, which delivers transparent lending rates for stablecoins, has been embraced as the industry standard for lending and borrowing operations in traditional finance (TradFi).

These developments have driven both retail and institutional adoption of the Aave protocol ecosystem.

For instance, Base, the prominent Ethereum Layer-2 blockchain operated by Coinbase, achieved a major milestone of 500,000 depositors on the Aave platform.

Additionally, Veda Labs, a DeFi infrastructure provider for financial applications, exceeded $1 billion in deposited capital through Aave protocol integration.

Aave Unleashes V4 Architecture as it becomes the Only DeFi Protocol with $1B+ on four Major Chains

Aave has strategically positioned its technology for universal accessibility and adoption. The recently unveiled Aave V4 architecture allows developers to access the primary Liquidity Hub through established credit facilities.

This framework empowers builders to construct specialized lending markets while leveraging DeFi’s most substantial liquidity network effects.

This innovation has expanded Aave’s presence across multiple blockchain ecosystems.

The lending protocol is now the sole DeFi platform maintaining at least $1 billion TVL across four major networks: Ethereum, Arbitrum, Base, and Avalanche.

Prominent cryptocurrency key opinion leader Ansem demonstrated via social media that Aave ranks among the strongest performing cryptocurrencies in Q2 2025, delivering a 62% gain during this period.

He shared a comparative analysis demonstrating this growth relative to other high-performers, including Hyperliquid and FARTCOIN, which achieved triple-digit returns.

A seasoned altcoin investor with over a decade of market experience observed that Aave’s current price action mirrors the 200% rally the token experienced in 2024.

This analyst projected a potential 168% breakout targeting $600, contingent upon favorable alignment of bullish technical patterns.

Technical Analysis: AAVE $271 Resistance Could Trigger 35% Rally to $364

The AAVE/USDT daily chart analysis reveals a recent recovery from key support at $244, with current price action stabilizing around $259.48.

This rebound is developing just above the 9-day Simple Moving Average ($253.65), suggesting renewed short-term bullish momentum is emerging. However, immediate resistance exists at $271, a key level requiring penetration to validate uptrend continuation.

The MACD indicator remains positioned below the zero line but displays early upward curvature, indicating diminishing bearish momentum with potential for an imminent bullish crossover indicator.

Should bulls successfully breach the $271 resistance barrier, the subsequent target zone ranges between $350.47 and $364.68, representing approximately 35% upside potential from current price levels.

Failure to overcome the $271 threshold could trigger another pullback toward the $244 support area for retesting.

Overall, the technical setup maintains cautious bullish characteristics, dependent upon a decisive breakout above the $271 resistance level.