The native token of DeFi platform Aave (AAVE) has achieved its highest price in three years this month. The price has sustained a minor pullback aligning with the broader market correction over the weekend but continues to hover close to the recently established multi-year high of $394. Several factors at play have potentially catalyzed this milestone. New data suggest AAVE’s price trajectory is underpinned by strong on-chain metrics and platform performance. Aave’s Steady Growth According to the latest analysis by DefiLlama, there has been a consistent year-long uptrend in Total Value Locked (TVL), token price, and fees. Aave’s TVL has undergone a parabolic surge this year after laying flat for most of 2023. It has risen from $6.62 billion in January to a new all-time high of $23.1 billion in December. Meanwhile, Aave’s fees have shown consistent growth over the past year, although at a smaller scale compared to its TVL and token price increases, suggesting increased usage and demand for the decentralized crypto lending platform. Santiment’s recent analysis revealed that AAVE’s rise is linked to a sharp decrease in the “Mean Dollar Invested Age,” an indicator showing the increased movement of dormant tokens by major stakeholders. This reactivation of inactive or dormant coins has been instrumental in boosting bullish trends. Additionally, the active traders have reaped significant profits as a result, with 30-day returns surpassing 96% and annual gains reaching over 290%. Last week, it achieved an impressive milestone with $38 billion in deposits, attracting significant whale interest, particularly from the Trump World Liberty wallet. Additionally, Aave’s social volume is also on the rise, reinforcing its status as a leading DeFi player. Room for Growth While the strong bullish momentum was met with a price pullback due to heightened market sentiment, experts currently suggest that AAVE has shown relative strength over altcoins this month, indicating that there’s more room for growth. Another crypto trader has shared an optimistic outlook for AAVE by highlighting its relative strength compared to the broader market. Despite recent market fluctuations, the analyst notes that the token is showing signs of attempting a breakout. The post Aave Sees Consistent Year-Long Uptrend in These Metrics as AAVE Price Rockets appeared first on CryptoPotato .
