- Aave has outperformed most cryptocurrencies at press time.
- Aave funding rates have shown a bullish bias.
Aave (AAVE) looks set to continue outperforming other cryptocurrencies, with the AAVE/BTC chart demonstrating this trend.
The AAVE/USDT pair has been on a steady rise, forming higher highs and higher lows. Recently, the weekly candle closed above the actual close of a consolidation zone that lasted over 800 days.
If AAVE price suffers a pullback on the daily chart, the $108 support zone will be critical.
As long as price remains above this zone, resistance levels can serve as potential price targets.
Source: TradingView
If it maintains its price above $150, it could target the $200 mark before the end of this cycle.
However, it is very likely that Aave will hit the $108 price level before moving towards the $200 target.
Financing rates turn green
Funding rates have turned green, according to Hyblock Capital tool, indicating growing optimism among traders about Aave’s price potential.
Positive funding rates suggest increasing demand for long positions, creating upward momentum as the market anticipates higher prices.
Combined with the current AAVE/USDT price action, Aave is likely to move higher.
Source: Hyblock Capital
However, if the price shows a significant downward movement, it might be better to stay away or cut losses.
Market performance
Market performance further supports this bullish outlook. Currently, over 55% of Aave holders are in profit at the current price level.
This is a positive indicator as these holders are less likely to liquidate their positions. Additionally, 80% of Aave’s supply is concentrated among large holders, which reinforces the expectation of an uptrend.
A large portion, around 77% of Aave holders, have held their tokens for over a year.
Source: IntoTheBlock
Additionally, large transactions exceeding $100,000 totaled over $411 million, and the number of Telegram members increased by 1.73%.
Net foreign exchange inflows currently stand at $14.94 million over the past 7 days, providing further support for a potential price increase.
Increased monthly income
In terms of revenue, Aave has surpassed the monthly revenue record from the previous cycle. Aave is now generating $1 million in weekly revenue while distributing only $327,000 in AAVE incentives.
It is also one of the few protocols to have surpassed its previous revenue peaks, generating $7.3 million in July 2024, about 9% more than its October 2021 figures.
Read Aave (AAVE) Price Prediction 2024-2025
The protocol has gained market share relative to its peers over the past two years, demonstrating its product-market fit (PMF).
Source: Token Terminal
Additionally, a proposal introduced in July 2024, which suggested adding a fee switch to return a portion of the platform’s net excess revenue to token holders, further supported the token’s strong price performance this year.
