Aave Holds Above $90 as V3 and V4 Deposits Surge
Aave token held above its 50-day moving average at $90.80 on Tuesday as protocol deposits grew significantly across versions. V3 deposits on Monad rose over $500 million in a month while V4 reached a record $350 million, though retail trading demand showed signs of weakness.
Key Takeaways
- 1## Price Action and Technical Level AAVE traded above $90.
- 280, its 50-day exponential moving average, as the token extended a mild recovery on Tuesday.
- 3The price action suggests the token is holding a key technical support level, though the source material does not detail the intraday range or trading volume to characterize the strength of the move.
- 4## Protocol Deposits Accelerating Deposits in Aave V3 on Monad blockchain increased by more than $500 million over the past month, indicating continued growth on the newer deployment.
- 5Aave V4 deposits reached a record above $350 million, marking a new high-water mark for the latest version of the protocol.
Price Action and Technical Level
AAVE traded above $90.80, its 50-day exponential moving average, as the token extended a mild recovery on Tuesday. The price action suggests the token is holding a key technical support level, though the source material does not detail the intraday range or trading volume to characterize the strength of the move.
Protocol Deposits Accelerating
Deposits in Aave V3 on Monad blockchain increased by more than $500 million over the past month, indicating continued growth on the newer deployment. Aave V4 deposits reached a record above $350 million, marking a new high-water mark for the latest version of the protocol. These figures suggest sustained user confidence in the protocol across its various deployments and versions.
Retail Demand Shows Softness
Despite rising on-chain deposit activity, retail demand for the AAVE token has weakened, according to the reporting. The divergence between growing protocol usage and softer retail trading interest is typical in cycles where institutional or protocol-aligned stakeholders drive activity while retail participation lags.
Why It Matters
For Traders
AAVE holding above the 50-day EMA suggests near-term technical support, but weakening retail demand could indicate limited fuel for sustained upside in the next 72 hours.
For Investors
Growing V3 and V4 deposits on new chains signal protocol adoption is expanding, though token price weakness despite rising TVL may indicate a valuation opportunity or a disconnect between usage and token utility.
For Builders
Monad's $500 million deposit inflow demonstrates that alternative L1s can attract meaningful Aave liquidity, expanding the addressable market for protocols integrating with multi-chain Aave deployments.
