AAVE Price Reaches 3-Month High on Increased Demand

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The price of AAVE, the governance token powering one of the most prominent decentralized lending protocols, has surged to a three-month high, trading at $115.80 as of the latest data. Since July 5, the asset has been on a steady upward trajectory, driven by growing investor confidence, increased network activity, and key protocol upgrades.

With momentum building across on-chain metrics and market sentiment turning decisively bullish, AAVE appears poised for further gains in the coming weeks.

Aave Hits Multi-Month Milestones in Activity and Volume

Thursday’s trading session marked a series of significant milestones for the Aave ecosystem. According to analytics platform Santiment, AAVE’s daily active addresses reached their highest level since March, with 1,029 unique wallets engaging in transactions involving the token. This spike in user engagement is a strong indicator of rising interest and real-world usage within the protocol.

Increased daily active addresses often precede price rallies, as they reflect growing participation and trust in the network.

Coupled with a 9% price increase over the past 24 hours, this uptick in network activity underscores a clear bullish trend. The momentum was further amplified by the full rollout of Aave V3.1 across all networks hosting active Aave V3 instances on July 31.

Aave V3.1 is now live on all networks with active Aave V3 instances.
Developed and upgraded by @bgdlabs and approved by the Aave DAO, the V3.1 enhancements improve the protocol’s overall security, operational efficiency, and usability.
— Aave (@aave) July 31

This upgrade introduces critical refinements that strengthen the protocol's resilience and user experience, including improved risk management modules and gas optimizations—key factors that appeal to both retail and institutional participants in the DeFi space.

👉 Discover how next-gen DeFi upgrades are shaping the future of digital assets.

On-Chain Data Reveals Surge in Trading Volume and Whale Accumulation

On-chain metrics provide further evidence of AAVE’s strengthening position in the market. Trading volume for the token has skyrocketed by 95% in just 24 hours, reaching $335 million—the highest level since March 6. Elevated trading volume during a price uptrend typically signals strong demand rather than speculative short-term trading.

Additionally, whale activity has surged in recent days. On-chain analytics firm Lookonchain reported that large investors—commonly referred to as “whales”—accumulated 58,848 AAVE tokens (worth approximately $7 million) in the two days leading up to the V3.1 launch.

Notable movements include:

These strategic deposits suggest that large holders are not only accumulating but also actively participating in the protocol—likely to stake, borrow, or earn yield post-upgrade. Such behavior often reflects long-term confidence in a project’s fundamentals.

👉 See how smart money moves can signal major market shifts before they happen.

Market Indicators Confirm Bullish Momentum

Technical indicators are aligning to support continued upside potential for AAVE.

The Chaikin Money Flow (CMF) currently stands at 0.18—above the zero threshold and in an uptrend. This indicates consistent net inflow of capital into AAVE, suggesting that buyers are absorbing supply more aggressively than sellers are offloading.

Meanwhile, the Elder-Ray Index is registering at 21.27 and has remained positive since July 26. This indicator evaluates the balance of power between bulls and bears by measuring the strength of buyers relative to the exponential moving average. A positive reading confirms that institutional-level buying pressure is dominant.

Together, these signals point to strong accumulation and sustained bullish control.

If current trends hold, AAVE could突破 $120 in the near term—a level not seen since early April. Continued adoption of Aave V3.1, combined with broader improvements in DeFi liquidity and sentiment, could propel prices even higher.

However, traders should remain cautious. Should bearish forces regain control, a pullback toward key support levels around $108–$110 may occur. A deeper reversal—though currently unlikely—could test longer-term supports near $95 or lower.

Frequently Asked Questions (FAQ)

Q: What is AAVE used for?
A: AAVE is the governance and utility token of the Aave Protocol, a decentralized lending platform. Holders can stake AAVE to earn rewards, participate in protocol governance, and act as a safety net through the protocol’s safety module.

Q: Why did AAVE’s price go up recently?
A: The recent surge was driven by multiple factors: the successful rollout of Aave V3.1, increased on-chain activity, rising trading volume, and significant accumulation by whale investors ahead of the upgrade.

Q: Is Aave V3.1 a major upgrade?
A: Yes. While not a complete overhaul like V2 or V3, V3.1 introduces critical security enhancements, operational improvements, and usability refinements across all supported blockchains.

Q: How does whale accumulation affect AAVE’s price?
A: When large investors accumulate a cryptocurrency, it often reduces circulating supply and signals confidence in future performance. This can trigger FOMO (fear of missing out) among retail investors, further driving demand.

Q: Where can I buy AAVE safely?
A: AAVE is listed on major regulated exchanges that support secure transactions and strong liquidity. Always use platforms with robust security practices and consider using cold storage for long-term holdings.

Q: What are the risks of investing in AAVE?
A: Like all crypto assets, AAVE is subject to market volatility, regulatory changes, smart contract risks, and shifts in DeFi trends. It’s essential to conduct thorough research and assess your risk tolerance before investing.

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Final Outlook: Bullish Pressure Builds for AAVE

The convergence of technical strength, on-chain validation, and protocol innovation paints an optimistic picture for AAVE’s near-term trajectory. The successful deployment of Aave V3.1 has reinforced trust in the platform’s long-term viability, while whale accumulation signals confidence from deep-pocketed investors.

With daily active addresses and trading volume hitting multi-month highs, the ecosystem is demonstrating organic growth—not just speculative hype.

While short-term corrections are always possible in volatile markets, the fundamental drivers behind AAVE’s rally suggest that this uptrend may have room to run. As DeFi continues to evolve and attract new capital, protocols like Aave—with proven track records and continuous innovation—are well-positioned to lead the next wave of adoption.

For investors and participants alike, now is a pivotal moment to monitor AAVE’s momentum as it tests key resistance levels and potentially sets new benchmarks for 2025.