$AAVE AAVE Breaks 500U Countdown: Three Major Engines Ignite the Soaring Path of DeFi Leaders

In May 2025, after experiencing fluctuations, the price of AAVE has gained strong momentum, with on-chain data and ecological progress releasing a strong signal to break through 500U. As the undisputed leader in the DeFi lending track, AAVE has been active recently, and its value logic is shifting from 'undervaluation repair' to 'explosive growth.' The three core engines may become the key to breaking through:

1. Token Economics Upgrade Ignites Demand

The repurchase plan launched by AAVE in April has cumulatively destroyed over 10,014 tokens, worth 1.39 million USD. If protocol income continues to grow, the future repurchase scale will expand exponentially. Coupled with the advancement of the 'revenue sharing' proposal, stakers can directly share protocol income, further reinforcing token deflation and economic incentives.

2. Ecological Expansion and Technological Revolution

The V4 version 'Unified Liquidity Layer' is expected to be launched in Q2 2025. Through cross-chain liquidity aggregation and modular design, capital utilization will increase by over 30%, allowing users to seamlessly access asset pools from 13 chains including Ethereum and Solana. Additionally, the BUIDL tokenization fund, in collaboration with BlackRock, integrates to inject tens of billions of dollars in RWA (Real World Assets) liquidity into the GHO stablecoin, and the institutional funding entry channel has been fully opened.

3. Market Sentiment and Valuation Repair

Currently, AAVE's price-to-sales ratio is only 17 times, far below the historical median of 62 times. The TVL (Total Value Locked) has surpassed 2.42 billion USD, reaching a nearly three-year high, with year-on-year revenue growth exceeding 50%. On the technical side, after breaking the 250U resistance level, the concentration of whale holdings surged by 18.9%, and exchange reserves sharply decreased by 22%, indicating that the main force is about to lift prices.

Outlook: If AAVE breaks through the critical resistance of 305U, it will open up upward space to 500U. With the implementation of V4 and the continuous influx of institutional funds, its 'lending + stablecoin + RWA' three-pronged driving model may become the sharpest DeFi blade of this bull market cycle.