Aave ($AAVE), the token for the leading DeFi lending protocol, has experienced a strong rally this week, climbing 6% and trading near the $292 mark. After breaking through earlier resistance, the token is now consolidating near the $290–$294 zone, with technical indicators suggesting momentum is building for further upside.
Aave's rally coincides with massive growth in the broader decentralized finance (DeFi) sector. The Total Value Locked (TVL) across all DeFi protocols has reached a new all-time high of $219 billion.
Aave remains the dominant force in this growth, with its deposits now totaling $74 billion. A key driver of this surge is Aave’s recent integration with Plasma, a new stablecoin-focused chain. Lending activity on Aave’s Plasma market exceeded $6 billion in less than a week, indicating rapid adoption.
The recent price action was backed by a significant spike in trading volume (above 143,000 units), which signals strong institutional demand.
Analysts believe that a decisive break above this current resistance zone could propel AAVE toward new highs, suggesting that the token's structure supports sustained demand as DeFi adoption continues to accelerate.
October 2025, Cryptoniteuae