Recent Technical and Protocol Developments
- Latest Protocol Upgrades
- Automated Security Unit Upgrade (June 5, 2025): Automated risk management system to cover irregular debts using token staking.
- Launch of Aave v3 Market on Soneium Chain (June 3, 2025): Expanding coverage to 6 million wallet addresses.
- Aave v3.3 Improvements (February 24, 2025): Enhancements to the liquidation mechanism and unsecured loan management.
- Supported networks: over 14 networks, including Ethereum, Polygon, BNB Chain, Celo, ZKsync, and new layer 2 networks like Linea zkEVM.
Key Protocol Performance Metrics
Total Value Locked (TVL) | $25.58 billion
Average Yield Per Deposit (APY) | ~5% (for stablecoin on Ethereum)
Trading Volume (30 Days) | Billions of dollars
Issued Supply from GHO | Over a billion (130% collateral)
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Recent News and Initiatives
Approval for Token Buyback: The Aave DAO community approved the purchase of $4 million worth of AAVE tokens to support the price.
Partnership with Ant Digital Technologies: to develop a Real World Assets (RWA) marketplace on Ethereum.
Ripple Integration with RLUSD: The RLUSD stablecoin supports borrowing and depositing in the Aave protocol.
Network Growth Surge: 20% increase in DeFi market share by May 2025.
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Technical Analysis and Forecasts
Current Trend
- Strong rise from $114 (April) to $312 (June) (+180%).
- Technical resistance at $266, strong support at $250.
Short-term Forecast
- Potential growth of +20-50% if the resistance level of $266 is broken, targeting the level of $320-350 (based on a V-shaped recovery pattern).
- Positive indicators: declining exchange balances, increasing institutional demand.
Potential Risks
- Market fluctuations: a 15% drop in 4 days in May due to selling pressure, but recovery was quick.
- Dependence on Ethereum performance: 95% of TVL is on ETH-linked networks.
- Competition from DeFi protocols: such as Pendle and Compound, especially in yield markets.
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💎Conclusion
Aave is expected to see strong growth in 2025 with technical expansion (new networks, security upgrades), increased adoption (record total value, institutional partnerships), and positive price indicators. Major challenges include market volatility and competition, but initiatives such as buybacks and the integration of risk-weighted assets (RWA) boost investor confidence. It is advisable to monitor support levels at $250 and resistance at $266 to determine entry and exit timing.