Native token of decentralized finance (DeFi) lender Aave {{AAVE}} on Tuesday rallied to its strongest price in three weeks, topping $290 as the DeFi lending sector is heating up.
AAVE saw considerable volatility throughout Monday and Tuesday, rebounding from the nadir of $277.57 to $291.11, gaining some 5%, according to CoinDesk Research’s technical analysis data.
Volume patterns remained robust throughout the period, with notable spikes during the 12:00-12:13 breakout phase exceeding 2,000 units, confirming authentic buying interest and validating the sustained recovery from earlier session lows, the model noted.
The recovery pattern suggests substantial purchasing interest at lower levels around $277.00-$280.00, establishing potential support zones for future price action, the model suggested.
The move happened as the broader DeFi lending space is enjoying a renaissance. Total value locked (TVL) in the sector soared to new highs above $56 billion, well surpassing the 2022 peak levels, DefiLlama data shows.
Aave is playing a dominant role in the growing trend: The protocol commands $26.4 billion in TVL across seventeen blockchains, per DefiLlama data. That means Aave have more assets on the platform than the 30 next rival lending protocols altogether, one market observer noted.
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