AAVE, a core cryptocurrency token of Aave, a leading DeFi protocol on EVM blockchains, outperforms all of the major cryptos. While the market benchmark is in the red, the AAVE price has logged a 25% overnight price increase. AAVE crypto might benefit from the U.S. GENIUS Act gaining support.
AAVE price spikes by 25% amid market apathy: Reasons
Today, May 20, 2025, AAVE, a native governance crypto of the eponymous blue-chip DeFi, has seen its price spiking by 25% in less than one day. The AAVE price jumped from $213 to a three-month high over $267. AAVE becomes the best performer in the top 100.
On social media, the cryptocurrency community attributed the success of AAVE to the GENIUS Act, which eases crypto regulation in the U.S. and makes it less hostile to DeFi and stablecoins.
Affected by this optimism, other DeFi tokens are also outperforming today. For instance, CRV crypto of Curve Finance DeFi is the second best performer with an 8% upsurge, while JUP of Solana's DeFi Jupiter is up by 5%.
By contrast, the market benchmark is in red today. The total capitalization of the cryptocurrrency segment dropped by 1.5% overnight, while Bitcoin (BTC) is only up 0.3%.
Aave (AAVE) now responsible for 20% of all DeFi TVL
Ethereum (ETH), the second-largest cryptocurrency, is up by 1%, while other majors XRP, BNB, DOGE and ADA are all losing value.
Aave (AAVE) also accomplished a number of records in its total value locked (TVL) metrics. After a recent upsurge, its TVL hit a new all-time high over $30 billion.
Aave now holds 20% of all DeFi TVL. pic.twitter.com/I8FQChIlgv
— Aave (@aave) May 20, 2025
That said, it exceeds all CeFi TVL combined and is equal to an unbelievable 20% of aggregated TVL of all DeFis in Web3.
Many analysts see the run of AAVE as the first signal of altcoin season incoming. Optimists see the token reaching $280-$200 in the near future.
