According to latest reports from AMBCrypto, AAVE has extended its bullish advance by recording a 20%+ surge this week, building on the previous 13% gain over the last 24 hours. The cryptocurrency has now climbed back to where it was at the beginning of January, rising above $180 and bringing both long- and short-term players closer to breakeven. AAVE was trading under the $90 price level in mid-August but has since crossed the $120, $140, $150, and $175 price levels, demonstrating a steady climb rather than a one-day spike. The latest rally comes despite US government debt offering yields north of 5%, with ten-year Treasury yields reaching levels not seen since 2007, as reported by AMBCrypto. AAVE reached an intraday high of $187.50 on October 2, with the latest session showing the token at $181.66, up $10.22 or 5.96% for the session. The cryptocurrency may now approach the $200 price level, another significant round figure where profit-taking typically occurs, with the $200 level sitting roughly 10% above the daily chart's recorded price. However, the token's recent pullback from its latest high of approximately $188 is currently testing the breakout responsible for the run-up, with AAVE initially slicing past $176 before retracing back down towards $180.51. This makes the $176 level crucial, as a break below this resistance will be the first opportunity for buyers to demonstrate if they can maintain recent gains.
As reported by AMBCrypto, Aave founder Stani Kulechov recently announced the protocol was considering the burn of AAVE tokens that were acquired via its buyback program. This potential development emerged as the Aave Protocol hit a cumulative revenue milestone of $3 billion. The existing model utilized the protocol revenue to purchase AAVE from the market, with the purchased tokens remaining within the DAO ecosystem instead of permanently leaving circulation. The burn activity proposal would create a permanent supply-reduction mechanism in the protocol, therefore reshaping how Aave directed revenue toward its native token. According to AMBCrypto, the proposed change would alter what happens to repurchased tokens, with permanent destruction removing them from supply, while the current reserve model retains them for uses including staking rewards, grants and service-provider payments. The $50 million annual budget for the existing buyback program includes weekly purchases ranging from $250,000 to $1.75 million, with acquired AAVE going to the DAO's Ecosystem Reserve for governance-approved uses rather than being burned. This development comes as the DeFi sector continues to attract institutional interest despite traditional market headwinds, with the $150-$155 price range remaining crucial for sustaining the current rally momentum.
According to AMBCrypto, whale activity has taken an upward trajectory alongside trading volume and exchange reserves, with recent Future Average Order Size data showing Aave whales are increasing their order sizes at current trading prices. The whale buying was of great significance as it introduced a direct market demand separate from the current buyback mechanism. Reportedly, two wallets swapped 50.95 WBTC, worth nearly $4.26 million, for 25,502 AAVE, adding another accumulation activity alongside the protocol-driven purchases. The whale accumulation implied large participants committing considerable capital to AAVE during the period, with the combined developments placing whale accumulation and protocol mechanisms within the same supply story. This whale participation creates additional room to amplify price movements and signals stronger institutional interest in the platform. The $175 price level has become a crucial support region, with the token trading above this level after the recent rally, while the $187.50 resistance level represents the next immediate barrier that buyers must overcome to sustain the current momentum.
As reported by AMBCrypto, Aave announced that the platform saw $1.1 trillion in borrow volume, demonstrating robust demand for lending services. According to DeFiLlama data, AAVE crypto closed last month with on-chain figures returning to where they were seen in early June. TVL peaked at almost $20 million, up 18% from the previous month, while fees crossed $37 million, climbing 15% from the same period last year. These figures confirm that Aave's on-chain activity is growing, with increased TVL speaking of inflows of capital into the platform and increasing fees demonstrating strong lending demand. The rise in AAVE's price is therefore justified by its actual usage on-chain, making AAVE's current upside more than just rotational flows from Bitcoin. The platform's growth trajectory has been consistent, with the token recovering from roughly $60 in June to trading around $85–$100 during July and August, followed by a late-August advance that lifted AAVE above that range, while September brought another consolidation around $120–$140 before the latest push higher.
According to AMBCrypto analysis, after passing the $150-$155 price region, AAVE reached the $175 mark and was trading above its major price averages. The cryptocurrency may now approach the $200 price level, another significant round figure where profit-taking typically occurs. On the 24-hour chart, AAVE rallied rapidly before facing resistance around the $165.98 region, where sellers interrupted the recent price rally. The broader technical structure remained supportive as AAVE continued trading above its rising trendline, with the $141.48 price level also remaining a crucial support region below the price. The Directional Movement Index (DMI) added another favorable signal after the rejection, with the DMI printing +DI at 37.16 against -DI at 12.65, while the ADX indicator reached 34.27, validating the narrative that the prevailing directional move had developed meaningful strength. The $187.50 resistance level represents the next immediate barrier, with a sustained move above this level opening a technical path toward $200. The daily MACD supports the upward price structure, with the MACD line at 11.97 above the signal line at 9.15, showing a positive histogram reading of 2.82. On the 4-hour chart, AAVE was trading at $182.08, with the ADX standing at 40.62 and rising, supporting a strong trend direction. The $175 level becomes the first daily level to monitor on a retracement, with a decline through this sequence weakening the latest breakout and returning AAVE toward its previous trading area.
As reported by AMBCrypto, the exchange reserve data introduced conflicting signals to AAVE's tightening supply outlook despite whale accumulation. According to CryptoQuant, Exchange Reserve USD expanded 6.26%, reaching roughly $440 million during the 24-hour period. This surge suggested more AAVE-denominated value moving into exchange reserves, creating a clear counterweight to the supply tightening narrative. The exchange supply, therefore, expanded even as whales accumulated tokens outside the wider reserve trend, creating conflicting signals across the market structure. Greater exchange availability could usher in additional selling pressure in case the token holders decide to distribute their tokens, with increased exchange reserves presenting a potential correction risk despite the whale accumulation and protocol-driven supply reduction mechanisms. The $187.50 resistance level faces significant liquidation pressure, with CoinGlass's 24-hour AAVE liquidation heatmap showing the strongest overhead band near $188–$189, with further clusters around $190 and $192–$194. Below the market, visible clusters sit around $181–$182 and $178–$180, with deeper concentrations near $173–$174 and $169–$170. The liquidation heatmap leaves potential liquidation pressure on both sides of the market, with a retreat into the upper-$160s band testing both a moving-average reference and an area of estimated liquidation exposure.
According to AMBCrypto, Aave's scale of business has clearly increased with cumulative deposits reaching over $3.8 trillion by mid-2026. The total cumulative deposits began growing slowly in 2021, accelerated around the end of 2022, and reached $1 trillion by 2023 before slowing down. However, cumulative deposits began growing again at an even faster pace in 2024, reaching $2 trillion and then $3 trillion. Deposits continued to be strong in 2025 and 2026, with the size of Aave's market for loans mattering significantly in determining its importance relative to other lending platforms. At nearly $4 trillion in cumulative deposits, Aave has clearly increased its scale of business, with its large pool of transactions increasing its competitive advantage relative to other lending platforms. Meanwhile, Aave is transitioning from building a protocol to establishing a defined legal entity that will be responsible for the core assets. In the proposal, a foundation will be established that will hold all of Aave's intellectual property, with token holders unable to directly acquire direct ownership of trademarks or domain names. Phase 1 vote allows for the creation of this new structure without passing any of the existing assets to it, with no need to conduct votes regarding asset transfers until after the framework has been created. This legal structure will facilitate future ownership transfers while limiting immediate impacts on the existing ecosystem.
