Aave Hits Era Mainnet, Eyes 10% Price Surge to Break Yearly High
Will AAVE Reach a New Yearly High | Credit: Hameem Sarwar
Key Takeaways
- Aave has increased over 30% since the beginning of August.
- Aave V3’s total value locked reached a new yearly high in July.
- Will the price of Aave reach a new yearly high this month?
Aave has been a standout performer in August, with a gain of over 30% this month. Since rebounding from its low on Aug. 5, the token has continued to climb, hitting a high of $144, just shy of its yearly high of $153.
The question now is whether Aave can push through this resistance level and reach new heights, potentially even breaking the $200 mark, or if this rally will eventually lose steam like it did back in March.
Aave V3 Launches on Era Mainnet
On Aug. 21, Aave announced the launch of Aave v3 in the Era Mainnet, powered by ZKsync’s Zero-Knowledge (ZK) roll-up technology.
Aave’s founder and CEO, Stani Kulechov, stated that combining ZK-proofs and Aave’s ecosystem will unlock scalability, privacy, and security levels not seen before in the Decentralized Finance (DeFi) space.
At the same time, Chainlink’s price fees will ensure that the market data powering the protocols is reliable.
Another partnership goal is to increase institutional use cases for DeFi and create privacy-focused DeFi applications.
Aave users will also benefit from the distribution of ZKsync airdrops through liquidity mining. This will include incentives for those who provide liquidity through Aave’s stablecoin, GHO.
On-Chain Activity Ramps Up
The Total Value Locked (TVL) for AAVE v3 has increased steadily since 2023.
It has nearly tripled in 2024 alone, going from $6.6 billion to a yearly high of $20 billion in July before a small drop took the TVL to $17.5 billion.
Nevertheless, the total TVL for Aave is still below the all-time high of over $32 billion, which it marked in October 2021. The recent increase in activity is seen throughout the DeFi landscape.
On Aug. 5, perpetual volume, stablecoin usage, and bridge volume hit their highest activity in over a year . In the case of Aave, liquidations on Aug. 5 reached $233 million, eclipsing its entire previous history.
Will AAVE Finally Clear $120?
The weekly time frame shows that AAVE has traded under the $120 horizontal resistance area since May 2022. The only exception is a brief increase in Jan. 2024, which could not be sustained (black circle).
Nevertheless, the AAVE price regained its footing with several bounces at its long-term ascending support trend line, the final one on Aug. 5. Since then, AAVE has created two bullish candlesticks, moving above the $120 resistance area this week. It now trades only 10% below the yearly high of $154.
There is a noticeable lack of overhead resistance, paving the way for a rapid increase. The closest long-term resistance is at $245, an increase of 75% measuring from the current price.
Besides the price action, the weekly RSI and MACD have both turned bullish. The MACD made a bullish cross and increased above 50, while the RSI moved above 50 (white icons).
So, the most likely future AAVE price prediction suggests an increase toward the $240 resistance is due.
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