AAVE holds above $90 as protocol deposits rise, but retail demand weakens
Key takeaways
- AAVE is holding above its 50-day EMA at $90.80 as its near-term recovery continues.
- Deposits in Aave V3 on Monad increased by more than $500 million over the past month.
- Aave V4 deposits reached a record high above $350 million.
Aave (AAVE) is extending its mild recovery on Tuesday, trading above the 50-day Exponential Moving Average at $90.80.
The recovery comes amid increased adoption of Aave's lending protocols. Aave V3's deployment on the Monad Layer 1 blockchain attracted more than $500 million in deposits over the past month, alongside more than $215 million in active loans.
Despite the rise in protocol activity, weak derivatives data and bearish momentum indicators continue to cloud AAVE's price outlook.
Aave V4 deposits reach record high
Deposits in Aave V4 have surpassed $350 million, establishing a new record after increasing by more than $100 million over the past 30 days.
The growth suggests rising adoption and may be partly driven by an attractive USDC borrowing offer. Holders of cbBTC, WBTC, WETH and wstETH can reportedly access a borrowing rate of negative 0.2%.
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