$18B TVL Boost Fails to Quell Growing Selling Pressure

Aave's Total Value Locked (TVL) has reached $18.05 billion, marking a significant milestone for the protocol. The surge in TVL coincided with Aave's native token, $AAVE, gaining nearly 25% over the past 24 hours.

The uptick in deposits and derivatives positioning contributed to the rally, but some warning signs are emerging. Net user incentives have climbed to their highest level since December 2025, reaching approximately $50,270 in August. However, this growth may not necessarily indicate lasting demand.

Furthermore, a lack of agreement among traders is evident in the derivatives market. The Long/Short Ratios on Binance and OKX show a bullish position, but with readings below 1, selling pressure is growing. The Open Interest-Weighted Funding Rate remains positive at around 0.0220%, but this may not be enough to offset the increasing selling dominance.