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AAVE Surges as Deposits Hit $50B; Poised to Benefit From U.S. Crypto Regulation

The bluechip DeFi token hit its strongest price in five months, gaining 8% over the weekend.

Jul 14, 2025, 4:31 p.m.
AAVE price on July 14 (CoinDesk)
AAVE price on July 14 (CoinDesk)

What to know:

  • DeFi lender Aave's token (AAVE) surged as high as $330 Monday, marking an 8% weekend gain amid a broader crypto rally.
  • The gains happened as Aave reached a record $50 billion in deposits, solidifying its position as the leading DeFi lending platform.
  • The platform could benefit from upcoming U.S. crypto and stablecoin regulations, asset manager 21Shares said.

Native token of decentralized finance (DeFi) lending platform Aave surged to its strongest price in several months on Monday

The bluechip DeFi token topped $330 during the session before cooling off at $316, gaining 8% over the weekend.

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The rally came as the DeFi sector is heating up amid a broader crypto rally, with bitcoin conquering fresh records above $120,000.

Aave is the dominant player in DeFi lending, and has just hit $50 billion in deposits on the protocol, a fresh record level.

The platform also poised to be one of the biggest gainers of advancing U.S. crypto regulations, analysts said.

"Aave is the biggest lending platform in decentralized finance (DeFi), and it could be a major winner from the GENIUS Act," digital asset manager 21Shares said in a Monday report.

The platform currently holds 5% of all stablecoin supply to earn a yield, more than any other DeFi protocol, the report noted. It also issues its own, overcollateralized stablecoin GHO {{GHO}}, which has a $312 million supply.

Aave also aim to benefit from the growing institutional participation and tokenization wave with the upcoming Horizon project that will let institutions borrow stablecoins by posting tokenized real-world assets such as money market funds as collateral, the report added.

Technical analysis:

CoinDesk's market analytics model highlighted a bullish structure for AAVE.

  • Trading volume spikes to 159,078 units during morning session, confirming institutional accumulation and sustained buying pressure.
  • Support base forms at $304.25-$305.63 during initial decline, providing foundation for subsequent rally phase.
  • Resistance cluster develops around $327.40 where multiple rejection attempts create volume-weighted ceiling.
  • Psychological support at $320.00 attracts consistent demand throughout consolidation period.

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