The US Securities and Exchange Commission (SEC) has officially concluded its investigation into the decentralized finance (DeFi) protocol Aave (AAVE), marking a significant development in the ongoing evolution of regulatory approaches within the cryptocurrency industry. Stani Kulechov, the founder and CEO of the Aave protocol, confirmed the end of the four-year investigation in a post on social media, expressing relief and optimism about the future of DeFi. Aave Founder Celebrates End Of SEC Investigation In his announcement, Kulechov emphasized the considerable effort and resources invested by the Aave team throughout this process. He stated, “We are finally ready to share that the SEC has concluded its investigation into the Aave Protocol.” Highlighting the impact of regulatory scrutiny on DeFi, he added, “This process demanded significant effort… to protect Aave, its ecosystem, and DeFi more broadly.” Related Reading: Will Bitcoin Suffer A 20% Decline After Japan’s Rate Hike? Historical Patterns Suggest So Kulechov expressed hope for a new chapter in which developers can freely innovate and contribute to the future of finance, asserting, “DeFi will win.” This conclusion is notable against the backdrop of heightened regulatory pressure that DeFi projects have faced in recent years. Under the previous SEC chair, Gary Gensler, the agency made a concerted effort to enforce regulations in the crypto space. In 2021, the SEC initiated 19 enforcement actions related to cryptocurrency in just the first nine months. However, recent patterns reveal a substantial shift in the commission’s stance on crypto enforcement. SEC Eases Crypto Enforcement Actions By Over 60% Since President Donald Trump returned to the White House, the SEC has reportedly eased enforcement actions in over 60% of ongoing cryptocurrency cases. A New York Times investigation published recently analyzed thousands of government documents and court records, revealing that the SEC has either dismissed, paused, or reduced penalties for a significant majority of active crypto cases since January 20, 2021. Related Reading: XRP Price Forecast: Key Factors That Could Propel It To $3 In Early 2026 While Trump’s first term saw an average of one high-profile cryptocurrency case per month—including the notable action against Ripple Labs—the current landscape indicates a less aggressive regulatory approach for major players like Binance, Ripple, and Gemini. Following the administration shift, enforcement actions against these companies have either been withdrawn or significantly softened. Paul S. Atkins, the newly appointed SEC chair under the Trump administration, has labeled this regulatory shift a “new day” for the cryptocurrency industry. At the time of writing, the protocol’s native token, AAVE, was trading at $187, having only surged by 1% following the announcement. However, on a year-to-date basis, the AAVE token has seen a significant 52% drop, with prices currently 72% down from the all-time high of $661 reached in May 2021. Featured image from DALL-E, chart from TradingView.com
After hovering around the $300 mark at the start of this week, the Aave price appears to have finally broken out of its consolidatory pattern. On Friday, September 12, the DeFi token made a brief return to the $320 level on the back of a general market surge. The strong momentum of the Aave price movement suggests that the altcoin’s return to $320 might not be a random occurrence. An interesting convergence of an optimistic technical outlook and positive on-chain data paints a picture of what is next for the AAVE token. What Does This Positive Divergence Mean For Aave? In a Quicktake post on the CryptoQuant platform, CryptoOnchain shared an interesting on-chain insight into the journey of the Aave price from around $130 in late 2024 to above $340 in the year. According to the crypto analyst, Aave’s Market Cap to Total Value Locked (TVL) ratio concurrently dropped to a two-year low as price rose to the 2025 high. Related Reading: Chainlink And Polymarket Forge New Alliance: LINK Forecasted To Outperform XRP By 2030 The MC/TVL ratio, as the name suggests, is an on-chain metric that compares a token’s market capitalization and the total value locked on its underlying protocol. CryptoOnchain noted that this indicator typically surges in tandem with price, except when the TVL metric grows at a rate faster than the market capitalization. However, the latest drop of the MC/TVL ratio to its lowest level in two years—as price grew—represents a positive divergence, which is likely driven by substantial capital inflows into Aave’s contracts. According to CryptoOnchain, this significant inflow of capital boosts the TVL without the market cap fully reflecting it. The crypto analyst attributed this situation to relative undervaluation—provided that the TVL growth is sustainable and not due to short-term yield farming activities. Overall, this positive divergence could be a bullish catalyst for both the AAVE price and the protocol’s fundamentals. Is $335 The Next Stop For AAVE Price? In a separate analysis on social media platform X, crypto analyst Ali Martinez set a target of $335 for the AAVE price. This positive prediction is based on its recent breakout of a falling wedge on the four-hour chart. The falling wedge, which is characterized by two converging downward trendlines, is often seen as a bullish formation. After falling into this pattern towards the end of August, the price of Aave has finally broken out of the falling wedge. According to Martinez, the AAVE price could travel to as high as $335 in its next leg up. This move would represent an over 5% move from the current price point. As of this writing, the price of Aave stands at around $318.5, reflecting an almost 4% jump in the past 24 hours. Related Reading: Expert Crypto Trader Says Dogecoin Price Looks ‘Very Good’, Here’s Why Featured image from Binance Academy, chart from TradingView
Despite the recent positive momentum in the market, the AAVE price seems to be back under bearish pressure over the past day. As a result of the dwindling sentiment, the price of AAVE has dropped beneath the psychological $200 level in the last 24 hours. However, a prominent crypto analyst on social media platform X has suggested that the DeFi token won’t be down for long. According to the crypto pundit, the AAVE price could begin a new bullish rally, with its sights on the $360 mark. AAVE Price Prediction: Analyst Forecasts 80% Surge Popular crypto trader Ali Martinez took to the X platform to share a video, explaining AAVE’s potential path to return to its former price highs in the current cycle. This optimistic prediction is based on a developing “broadening formation” on a medium-term timeframe of the AAVE price chart. Related Reading: Bitcoin Price Crash Incoming? Why A Fall To $63,000 Is Possible If This Resistance Holds For context, a broadening formation is a price pattern in technical analysis characterized by two diverging trendlines; a rising upper trendline (connecting a series of higher highs) and a falling lower trendline (connecting lower lows). This pattern is often associated with a period of increasing price volatility (or significant price action). Typically, broadening patterns are bearish chart formations for most asset prices, as they are often correlated with rising volatility without a clear indication of the next direction. However, the current formation appears to be bullish and could prove a pivotal turning point for the AAVE price. According to Martinez, the DeFi coin looks primed for a bullish break out of the developing broadening pattern. However, the AAVE price would need to breach the crucial resistance level of around $250 before this bullish breakout can be confirmed. If AAVE successfully closes above this $250 resistance zone, investors could see its price travel to as high as $360 over the next few weeks. This would represent an over 80% surge from the current price point. Can Whales Push AAVE To $250? As of this writing, the price of AAVE is hovering around the $200 mark, reflecting an over 6% decline in the past 24 hours. According to CoinGecko data, the AAVE price is up by 4.3% on the weekly timeframe. While the DeFi coin is far away from the critical $250 mark, the appropriate positive catalysts might be all it needs to cross this level in a few days. One such catalyst that could prove crucial is the rising activity of AAVE whales in recent days. Data from Santiment shows that the AAVE token saw the largest increase in the amount of $100,000 whale transactions over the past week. The number of these large transactions skyrocketed by more than 267% in the highlighted period. Related Reading: This Bitcoin Price Range Could Be The Bulls’ Final Defense Line, Report Says Featured image from Binance Academy, chart from TradingView
The past week was one of two distinct halves for the AAVE price, which initially kicked off with a bearish downturn beneath the $300 mark. The DeFi coin has since shown strong signs of recovery, jumping to as high as $340 on Friday, January 31st. Based on its latest price setup, the AAVE token looks set to be one of the best performers in the crypto market this February. However, a crypto analyst has clarified that it might not be a smooth sailing journey for the AAVE price over the next few months. Here’s How AAVE Could Reach Its High In This Cycle Prominent crypto trader Ali Martinez took to the X platform to share an exciting bullish projection for the price of AAVE. According to the pundit, the DeFi coin could be readying for an over 6,400% rally before the end of this current cycle. Related Reading: Shiba Inu Burn Rate Explodes 7,240% With 1.1 Billion Tokens Burned In 24 Hours, What’s Driving It? This bullish prediction is based on the action of the AAVE’s price around a TD (Tom Demark) Sequential resistance trendline. The TD Sequential indicator is a tool used in technical analysis to identify the exact time of trend exhaustion and price reversal for a specific token. However, the TD Sequential indicator can also generate trendlines, which can serve as crucial resistance and support levels for price. These levels are determined using the extremes of the first candle in the Setup phase of TD Sequential. In the last cycle — specifically in 2020, the AAVE price breached the TD Sequential resistance trendline (represented as the black dots in the chart above). This singular action was followed by a 6,400% rally, which saw AAVE reach its current all-time high price of $661 in 2021. As it stands now, the price of AAVE is testing a similar resistance trendline around the $350 level on its monthly chart. If the price successfully breaks through this resistance zone — and history holds true, AAVE could witness a move to $3,500. AAVE Price In The Short Term? As of this writing, AAVE’s price stands around $337, reflecting an almost 7% increase in the past 24 hours. According to data from CoinGecko, the altcoin is down by 1% in the last seven days. Related Reading: Get Ready: XRP Set To Skyrocket To $4.39, Says Trading Guru While AAVE’s future looks incredibly bullish, there are certain obstacles the DeFi coin might need to overcome sooner than expected. According to Martinez in a separate post on X, the AAVE price faces two key resistance zones at $243 and $365, where investors purchased 1.3 million and 971,000 tokens, respectively. Martinez noted that breaching these supply barriers is crucial for AAVE’s bullish breakout and a potential run to a new all-time high. Featured image from Binance Academy, chart from TradingView
Aave (AAVE), the leading decentralized finance (DeFi) lending protocol, has captured the spotlight with an extraordinary surge of over 200% since November 5. Outperforming the broader market, AAVE has reached its highest levels since 2021, marking a remarkable recovery and reaffirming its dominance in the DeFi ecosystem. Related Reading: ONDO Exchange Inflows Grow – Volatility Ahead? Key metrics from IntoTheBlock underscore AAVE’s unmatched position in the lending sector. With an impressive 45% market share, it remains the top choice for users seeking decentralized borrowing and lending solutions. With AAVE trading at multi-year highs and on-chain data suggesting robust activity, the altcoin’s trajectory remains a focal point for investors and analysts alike. The question is whether the price can sustain this momentum and reach new all-time highs in the coming months. AAVE Keeps Growing Aave (AAVE) has shown consistent growth over the past year, solidifying its position as a market leader in the DeFi lending sector. Known for its innovative approach to creating non-custodial liquidity markets, Aave enables users to earn interest on supplied and borrowed assets at variable interest rates. This approach has made Aave a go-to protocol for decentralized borrowing and lending. For years, Aave has been at the forefront of DeFi innovation, continually enhancing its platform and user experience. Its success is evident in its market dominance. Metrics from IntoTheBlock highlight Aave’s unrivaled leadership, boasting an impressive 45% market share in the DeFi lending space. This dominance is further emphasized by Aave’s staggering total value locked (TVL), which stands at $21.2 billion—almost equal to the combined TVL of all other lending protocols. Related Reading: Ethereum On-Chain Metrics Looking Strong – Momentum Building For ETH? Such figures underline Aave’s critical role in the DeFi ecosystem. Its established presence and robust infrastructure position it as a key player in the event of a broader DeFi resurgence. Should the sector heat up in the coming weeks, Aave is likely to attract significant attention from investors and traders. Price Targets Fresh Supply Levels Aave (AAVE) is currently trading at $366, following a surge to a multi-year high of $396 just hours ago. The altcoin continues its upward momentum as it approaches the critical $420 resistance level, a threshold last held in September 2021. This mark is seen as a pivotal area for AAVE’s next phase of price action, with many analysts expecting a significant reaction once tested. If AAVE manages to hold its current levels and sustain the bullish momentum, the next logical target would be the $420 resistance zone. Breaking above this level could signal a continuation of its multi-month rally, setting the stage for even higher price targets as investor confidence builds. On the downside, failure to maintain support above the $320–$340 range could lead to a broader correction. A move below this zone might push the price lower, erasing some of its recent gains and dampening bullish sentiment in the short term. Related Reading: Dogecoin Will See New ATH Soon – Top Trader Sets $2 Target AAVE remains in a strong position for now, but traders are closely monitoring its price action near these key levels. Whether it can sustain its upward trajectory or faces a pullback will depend on its ability to break and hold above significant resistance zones. Featured image from Dall-E, chart from TradingView
The cryptocurrency market has been fairly positive over the past week, with the decentralized finance (DeFi) sector and tokens particularly impressive over the last seven-day span. Aave price, for instance, seems to have taken off after making a somewhat tame performance in the remarkably bullish month of “Moonvember.” According to data from CoinGecko, the price of AAVE has increased by more than 26% over the past week. However, the latest on-chain data suggests that the DeFi token may face some hurdles in its bullish trajectory and suffer a slight setback in the short term. Is AAVE Price Going To Witness A Correction? In a recent post on the X platform, prominent crypto analyst Ali Martinez revealed that the investor sentiment around the Aave token has become increasingly positive following its latest price upswing. This on-chain observation is based on the Social Volume and Weighted Sentiment metrics. Related Reading: Bitcoin Daily Bollinger Bands Expand, Why BTC Price Could Rise To $120,000 As Early As Next Week The Social Volume metric measures the total number of mentions of a particular crypto asset on various social media platforms in the last 24 hours. In essence, it tracks the degree of discussion surrounding a cryptocurrency on social media. Meanwhile, weighted sentiment is a product of sentiment score and social volume. Typically, there is a significant shift in this metric when the social volume is high and there is a specific average sentiment (either positive or negative). Based on data from Santiment, the social volume and positive sentiment around the AAVE price action have grown significantly over the past few days. As shown in the chart below, this soaring positive sentiment correlates with the Aave price surge over the past week. According to Martinez, a brief price correction might be on the cards for Aave, especially with the crypto crowd seemingly hyped about the DeFi token’s price performance. This is based on the notion — backed by historical data — that crypto prices often in the opposite direction of the crowd. Recent price action data shows that the Aave price might be falling into something of a consolidation range, having failed to hold above the $380 mark on Friday. As of this writing, the Aave token is valued at $365, reflecting a mere 0.4% increase in the past 24 hours. DeFi Coins Back At It? Most of the attention has gone to the meme coins — and deservedly so — in this bull cycle. However, it appears that prominent DeFi coins are beginning to pull their weight and stake a claim for the spotlight. Related Reading: Dogecoin Bullish Takeover: DOGE To Outperform Bitcoin By 2,400% — Here’s How The past week saw many large-cap DeFi tokens, besides AAVE, grow in market value. According to data from IntoTheBlock, the market capitalization of the DeFi token sector nearly doubled to $20 billion in the past week. Featured image from Unsplash, chart from TradingView
US President-elect Donald Trump’s World Liberty Financial (WLF) has made a substantial multi-million-dollar investment in Ethereum (ETH), Aave (AAVE), and Chainlink (LINK), leading to sharp price increases in AAVE and LINK. According to on-chain analysis shared by Lookonchain via X and verified through Etherscan, the fund purchased approximately $10 million in ETH, $1 million in AAVE, and $1 million in LINK on December 11. These are the fund’s first recorded acquisitions of both AAVE and LINK, while overall purchases in the last 12 days total around $30 million in USDC spent to secure more than 8,000 ETH at an average price of $3,701. Trump’s World Liberty(@worldlibertyfi) is buying $ETH, $LINK and $AAVE! In the past 9 hours, the World Liberty Multisig wallet spent 10M $USDC to buy 2,631 $ETH at $3,801, 1M $USDC to buy 41,335 $LINK at $24.2, and 1M $USDC to buy 3,357 $AAVE at $297.8.https://t.co/mtD0c2tvvo pic.twitter.com/B11KvcwRJQ — Lookonchain (@lookonchain) December 12, 2024 Shortly after the news surfaced, AAVE soared roughly 31% in the past 24 hours, and LINK rose by about 23.5%. Related Reading: Chainlink Price Shines With 40% Rally — Is $28.5 Possible? The surge coincides with World Liberty Financial’s recent decision to integrate Chainlink’s technology. Last month, WLF announced that it “will leverage Chainlink as the standard for onchain data and cross-chain interoperability” to secure its protocol ecosystem. The press release described Chainlink as “the most secure solution for solving critical security, interoperability, and onchain data problems” while noting that this would “kick off the next wave of DeFi mass adoption” for WLFI. The platform plans to integrate Chainlink Price Feeds on Ethereum mainnet in anticipation of deploying a World Liberty Financial version of Aave’s v3 instance, pending governance approval. Related Reading: Whale Activity Sparks Chainlink Rally, $52 Target On Traders’ Radar In October, WLF submitted a proposal on the Aave governance forums seeking to deploy its own Aave v3 environment. Aave founder Stani Kulechov has confirmed that WLF’s instance is not a direct fork of Aave’s code but operates as a segregated version tied to separate, KYC-compliant front-ends. While this means WLF is tapping into the largest smart contract-compatible public blockchain and leveraging core decentralized finance primitives, it also maintains stringent compliance requirements. The project is initially limited to accredited investors within the United States. AAVE, which has risen by roughly 138% over the last five weeks, is also showing technical resilience. Today’s price action pushed it above the 0.5 Fib level at $356.84 (drawn from the all-time high to the cycle low). If this level holds on a weekly closing basis, upside targets could include the 0.618 Fib at $430.29, the 0.786 Fib at $534.87, and ultimately the ATH from May 2021 at $668. Chainlink’s performance over the past five weeks has been particularly strong, posting a gain of more than 175%. The most critical technical resistance level now appears to be the 0.5 Fibonacci retracement at $28.88. A decisive break above this level could open the path to the 0.618 Fib at $34.57, the 0.786 Fib at $42.67, and potentially the all-time high (ATH) from May 2021 at $53. At press time, LINK traded at $27.67. Featured image created with DALL.E, chart from TradingView.com