Aave, one of the leading decentralised finance (DeFi) lending platforms, is showing signs of stability as it holds near the $265 price level. Despite recent volatility, the protocol has achieved a significant milestone, becoming the first DeFi platform to cross $60 billion in net deposits.
While Aave is up 3% over the past 24 hours, it remains down 4.8% over the week and 6% in the last 30 days. This subdued performance comes alongside strong on-chain activity and growing interest in the protocol’s long-term potential.
Net deposits surge past $60 billion, signalling user trust
According to an official announcement on 6 August, Aave’s net deposits have now exceeded $60 billion. Net deposits represent the difference between assets supplied to the protocol and those borrowed. A positive figure indicates that more assets are being supplied than withdrawn or borrowed, reflecting increased user confidence and capital inflows.
Founder Stani Kulechov highlighted this milestone as proof of growing interest in decentralised lending. Aave’s latest achievement positions it as the most trusted DeFi protocol in terms of deposit stability.
DeFiLlama data supports this trend, showing a 45% increase in Aave’s total value locked (TVL) from $24 billion in early July to nearly $35 billion. Additionally, protocol revenue grew sharply, with network fees rising from $48 million in June to $65 million in July. This uptick points to increased borrowing activity and more user engagement across the ecosystem.
New developer toolkit launched to boost ecosystem growth
To further expand its utility and developer base, Aave launched its V3 developer toolkit on 6 August. This includes React hooks, SDKs, and APIs designed to make it easier for developers to build on top of the Aave protocol.
The toolkit allows for the deployment of lending vaults, flexible tools that help developers and protocols create lending strategies with customisable risk parameters. These vaults are expected to open up more modular options for borrowing and yield generation, improving both accessibility and innovation within the ecosystem.
This move aims to attract more developers and projects to integrate Aave’s lending infrastructure into their own platforms, ultimately supporting long-term growth.
Muted trading volumes but leverage builds quietly
Despite positive on-chain data, Aave’s market activity has cooled in recent days. According to Coinglass, 24-hour spot trading volume dropped by 13% to $297 million, while derivatives volume fell by 19.3% to $503.6 million.
However, open interest in Aave rose by 4.1% to $561.9 million, suggesting that leverage is building quietly. Traders may be positioning themselves for a potential breakout, even as daily volumes remain muted. This kind of divergence between open interest and volume often precedes sharp market movements.
Technical analysis: Support holding, but indicators mixed
Aave’s current price behaviour shows consolidation around the $265 level. The lower Bollinger Band sits just below this price, acting as local support during this sideways movement.
On the technical side, the momentum is still mixed:
- The MACD is negative at -9.31, signalling bearish pressure.
- The RSI sits at a neutral 43.3, not yet indicating oversold conditions.
- While long-term moving averages like the 100- and 200-day SMAs remain bullish, shorter-term EMAs such as the 20-, 30-, and 50-day indicators are flashing sell signals.
- Momentum indicators like the awesome oscillator and Stochastic RSI remain neutral but are tilting slightly bullish.
A decisive breakout above $280, which would push the price above the 20-day EMA, could open the door for a rally toward the next resistance zone between $310 and $315. Conversely, if the price breaks below the $250–$255 support range, Aave could retest its June lows near $230. A drop below the lower Bollinger Band, combined with rising sell volume, would likely accelerate this downside move.
Breakout possible, but caution remains
Aave’s fundamentals remain strong, supported by growing net deposits, increased protocol revenue, and rising developer interest following the V3 toolkit release. However, market traders are still hesitant, as shown by reduced trading volume and cautious sentiment.
With leverage quietly building and support levels holding, Aave could be gearing up for a breakout. But traders should keep a close eye on the $280 resistance and $250 support zones to gauge the next decisive move.
For now, Aave stands firm at $265, backed by strong fundamentals but waiting for confirmation from market sentiment.
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