Aave sees consistent year-long growth in these metrics as AAVE’s value rockets

The native token of DeFi platform Aave (AAVE) hit its highest price in three years this month. The price pulled back slightly with the broader market correction over the weekend, but continues to hover near the recently established multi-year high of $394.

A number of factors at play can control this large scale. New data suggests that AAVE's price trajectory is strongly supported by chain metrics and platform performance.

Aave's steady growth

According to Defillama's latest analysis, there has been a consistent year-over-year increase in total value locked (TVL), token value, and fees. Aave's TVL underwent parabolic surgery this year after sitting for most of 2023. It rose from $6.62 billion in January to an all-time high of $23.1 billion in December.

Meanwhile, Aave's payments have seen consistent growth over the past year, albeit at a modest rate compared to TVL and token price increases, demonstrating the use and demand for a decentralized crypto lending platform.

Sentiment's latest analysis indicated that the increase in AAVE was associated with a significant decrease in “Average Dollar Invested Age,” an indicator of increased dormant token activity by major stakeholders. This reactivation of inactive or dormant coins has been instrumental in boosting bullish trends. Additionally, active traders have made huge profits as a result, with 30-day returns of over 96 percent and annualized gains of over 290 percent.

Last week, it marked an impressive milestone with $38 billion in deposits, attracting significant whale interest, particularly from the Trump World Liberty Wallet. Additionally, Aave's social scale is also increasing, strengthening its status as a leading DeFi player.

Room for growth

While the strong bullish momentum has caused price reversals due to heightened market sentiment, experts suggest that AAVE has shown relative strength against altcoins this month, indicating that there is still room for growth.

Another crypto trader shared AAVE's optimism, highlighting its relative strength compared to the broader market. Despite recent market changes, the analyst notes that the token is showing signs of a breakaway attempt.