For those closely monitoring the DeFi sector, Aave (AAVE) has just provided another compelling reason to keep an eye on this platform.
July 20 marks an important milestone as Aave's DAO treasury – not counting the native AAVE tokens – reached a historic peak with a value of $125 million. This figure is impressive not only for its scale but also reflects an exceptional growth of 123% compared to the same period last year.
This is a clear testament to Aave's revenue-generating capability and effective asset management, even in the context of a highly volatile market.
The current asset structure of the DAO treasury is also noteworthy. Of this, 44% is stablecoins, 41% is Ethereum (ETH), and the remaining 15% is allocated to other DeFi tokens.
This allocation strategy reflects a wise investment mindset: diversification to manage risk while still maintaining a close connection with the cryptocurrency ecosystem – an approach that is both cautious and oriented towards sustainable growth.
ETH plays a more important role than ever for Aave.
History has shown that whenever the price of ETH rises sharply, the demand for borrowing also explodes – especially on protocols like Aave, where users can collateralize ETH to borrow other assets.
As more people leverage ETH's upward trend to borrow funds, the transaction fees that Aave collects also increase. This not only enhances the operational performance of the protocol but also helps boost the value of AAVE – the native token of the platform – in the eyes of investors.
If Ethereum continues to maintain its upward momentum, it is highly likely that the usage and revenue of the Aave Protocol will also grow correspondingly.
On-chain data is reinforcing this trend: in just the past 24 hours, the number of active wallets associated with Aave has surged – a signal indicating that interest and the platform's utility are expanding.
While it may not necessarily lead to immediate price volatility, this is an early indicator that seasoned investors often keep a close watch on.
Can this altcoin ride the next wave of price increase?
While it is still too early to confirm a real breakout, the fundamental factors are gradually converging – and the overall picture is becoming increasingly promising.
The strength of the DAO treasury, the impressive recovery of ETH, along with increasingly active user participation is creating a favorable environment for Aave. If the project knows how to capitalize on this golden moment – through strategic upgrades or reasonable incentive policy adjustments – then AAVE could very well enter a phase of explosive growth.
Currently, AAVE is trading around $309.69, equivalent to an impressive recovery of 162.04% from the low in April 2025. If the upward trend continues, this coin has the potential to challenge the resistance level at $400 – the highest level since the beginning of the year. Successfully conquering this milestone could open up opportunities to reach around the historic peak price of $550.