Aave Prepares for Major V4 Upgrade: Enhancing DeFi Architecture and Targeting $388 Price Target

Decentralized finance giant Aave is gearing up for its significant V4 protocol upgrade, slated for launch in Q4 2025. This update is designed to revolutionize decentralized lending through a new modular "hub and spoke" architecture.

Key Features of Aave V4:

• Modular Architecture: Moving away from a monolithic system, the new "hub and spoke" design connects various market modules ("Spokes") to a central liquidity pool. This allows for diverse risk profiles and lending rates without separating capital, enhancing liquidity flow and risk management.
• Unified Interface: Users will benefit from improved transparency, with a single interface to monitor all their positions across multiple market modules.
• Automation: The new position manager feature will automate certain on-chain actions, streamlining the overall user experience.

With a current market cap of approximately $3.9 billion, Aave’s growth remains linked to wider DeFi adoption, stablecoin expansion, and, critically, Ethereum's performance, as the platform is built on the ERC-20 standard.

Aave Price Prediction:

Technically, Aave's price trajectory hinges on the broader altcoin market momentum. Currently trading around $255, this level has historically served as a base for rallies. Should Aave maintain this support and benefit from V4 optimism, it could target its next major resistance at $388. A confirmed breakout above $388 could signal a significant 50% price gain. However, a safety net for buyers exists near $218 if the market experiences short-term weakness.

October 2025, Cryptoniteuae