Aave's Record-Breaking Deposits Put Price at Crucial Test

Aave, a leading decentralized lending protocol, has reached a significant milestone with its cumulative deposits surpassing $3.8 trillion. This growth in deposits is a testament to the protocol's increasing scale and competitive advantage in the lending space.

The price of Aave's native token, AAVE, has been testing its recent breakout level at around $176. If it manages to hold above this level, it would preserve the bullish structure and maintain the recent gains. However, a break below $176 could expose $156-$158 as the next support level.

The protocol's growth in deposits has been consistent, with a significant slowdown in 2023 followed by a rapid increase in 2024 and 2025. The establishment of a new ownership structure, which would hold all of Aave's intellectual property, is also underway. This change would allow for the creation of a framework for future ownership transfers without immediately impacting the existing assets.