TL;DR
- Price Action: AAVE is holding the $120 demand zone, trading near $123 and recovering from a recent dip while still within a broader corrective trend.
- RWA Growth: Aave’s Horizon market surpassed $1 billion in real‑world asset deposits, doubling since January and helping push DAO revenue to $142 million in 2025.
- Market and Governance: Spot and futures volumes softened, but open interest rose, signaling cautious positioning. Governance discussions and Grayscale’s ETF filing highlight expanding institutional access.
AAVE is stabilizing near the $120 demand zone while real‑world asset deposits on Aave’s Horizon market surpass $1 billion, signaling growing institutional engagement. The token trades around $123, up slightly on the day and positioned near the midpoint of its weekly range. Despite a 10% weekly gain, AAVE remains down over the past month, reflecting a broader corrective trend that has persisted since December’s move toward $200.
Market Activity Shows Cautious Positioning
Spot activity has cooled, with trading volume slipping to $280 million in the last 24 hours. Derivatives markets show a similar slowdown, as futures volume fell to $274 million. However, open interest rose to $203 million, suggesting traders are building exposure gradually rather than chasing short‑term volatility. This mix of softer volume and rising open interest points to a market preparing for a potential shift in momentum.
The lending protocol announced that real‑world asset deposits have doubled since January, making it the first lending protocol to exceed $1 billion in tokenized RWA collateral. These assets, which include tokenized bonds and treasury‑like products, highlight increasing institutional participation in decentralized finance. The growth has contributed to stronger fundamentals, with Aave DAO revenue reaching $142 million in 2025, surpassing the combined total of the previous three years.
Governance and Institutional Access Expand
A proposal titled “Aave Will Win” seeks to direct all revenue from branded products to the DAO treasury while funding Aave Labs to develop Aave V4 and transfer intellectual property to the community. Meanwhile, Grayscale has filed to convert its Aave Trust into an ETF on NYSE Arca, a move that could broaden access for traditional investors if approved.
The token is attempting to hold the $115 to $120 zone after buyers absorbed a recent dip toward $105. The broader structure remains bearish, with a reversal requiring a close above $135 to $140. Indicators show tightening Bollinger Bands and an RSI recovery toward 45. A break above $135 could open targets near $150 to $175, while failure to hold $120 risks a return to $105.
