$AAVE Price to Test Key Technical Zone Amid Growing Demand for Aave V4 Prime Loans

Aave's V4 Prime lending platform has reached a new milestone, surpassing $4 million in active loans. This growth is attributed to features such as no collateral rehypothecation and incentives for borrowing USDC at a -0.2% rate.

The ecosystem continues expanding with tens of billions flowing into Aave through its network across 14,655 unique wallets and 197,501 transactions. This level of activity suggests both institutional and retail users are utilizing the platform despite market volatility.

The $AAVE price is currently trading above its 50-day EMA and may test the important technical zone near $110. However, this area could also become strong resistance if buying demand continues strengthening.