Although Aave does not call itself the most important financial marketplace in the Ethereum ecosystem, its active portfolio includes approximately $25 billion in loans.
By October 21st, the decentralized lending protocol had approximately 1,000 different borrowers each day with over $25 billion in outstanding positions, significantly surpassing other competitors such as SparkLend and Morpho.
According to Defilama data, Aave’s value as a provider of debt financing alone is nearly $26 billion, giving it an unprecedented advantage in the industry.
(Source: Defilama)
This increase represents a more general trend in DeFi lending towards larger, safer pools following rapid deleveraging in 2022-2023.
Capital is focused on well-audited protocols with deep liquidity and conservative parameters, an area where Aave continues to lead.
The developer is also preparing to launch Aave v4, a major upgrade designed to connect liquidity across multiple chains. This move could further strengthen its position as the backbone of Ethereum-based credit markets.
Currently, Aave has the upper hand in terms of scale and stability. The question now is whether this strength will be reflected in the AAVE token as the larger market looks to move higher on the second leg.
Aave’s recent trends correlate with the gradual increase of the GHO stablecoin and expectations for the next v4 upgrade.
The new version allows for liquidity chain coordination and streamlines the clearing process. This is considered critical to the expansion of decentralized lending.
Founder Stani Kulechov described v4 as a path to “deep liquidity in DeFi.” Industry analysts say the upgrade could reduce fragmentation across the Aave market by introducing a hub-and-spoke structure that links multiple networks through a shared liquidity layer.
AAVE token traded Over the past 24 hours, it has gained nearly $236, or about +2.5%. Its market value was approximately $3.6 billion, with prices ranging from $219 to $236.
Still, the token remains well below its previous cycle highs, reflecting investor caution over how protocol revenues will translate into token value ahead of the v4 rollout.
According to Aave Dashboardthe protocol generated approximately $370,700 in revenue in the past 24 hours, bringing its annual revenue to approximately $95 million.
(Source: Defilama)
These numbers are closely tracked by stakeholders and safety module participants and are considered indicators of future yield and long-term sustainability.
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AAVE Price Prediction: Why is AAVE struggling to break out of the $260-$280 resistance zone?
AAVE/USDT chart share Crypto analyst Popeye points out a textbook Wyckoff distribution pattern.
Every day – looks like a textbook distribution.
Be careful when aiming for a push or sweep, but the distribution range usually ends in a long downtrend. pic.twitter.com/NHpv3Mgpyx
— Popeye (@SailorManCrypto) October 21, 2025
The token, which experienced a significant rally, has since stabilized between around $220 and $340 with intervening highs. This pattern usually signals a decline in demand and the beginning of a market peak.
The failure to overcome resistance despite several attempts and subsequent rejection at around $260 indicates that the seller is in control of the day.
A further statement of increasing supply pressure is the sharp drop below $200.
Since then, the price has moved away from the lower range, but it has held at the lower end against resistance at the final level, leaving little buying power.
According to the Wyckoff scheme, AAVE may be in a price decline phase, where the distribution shifts to a large decline.
Analysts say a strong recovery above the $260-$280 area with increased volume will be needed to change the mood. Without it, this setup will continue to weaken, increasing the risk of a continued downtrend.
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