In a remarkable turn of events, Aave’s price has surged past the $320 mark, marking a significant milestone for the decentralized finance (DeFi) token. This upward trajectory began earlier this week when Aave broke free from its stagnant trading pattern around $300. The token’s rally on September 12 coincides with a broader market upswing, suggesting that Aave’s upward momentum might not be a mere coincidence. Instead, a confluence of technical indicators and on-chain data provides a promising outlook for Aave’s future.
Positive Divergence: What Does It Mean for Aave?
A recent analysis by CryptoOnchain on the CryptoQuant platform sheds light on Aave’s price journey, which saw it rise from $130 in late 2024 to over $340 this year. A key highlight from this analysis is the Market Cap to Total Value Locked (MC/TVL) ratio, an on-chain metric that juxtaposes a token’s market cap with the total value locked in its protocol. Interestingly, this ratio has hit a two-year low even as Aave’s price ascended to its 2025 peak.
Normally, the MC/TVL ratio climbs alongside the price. However, the current drop indicates a positive divergence, suggesting substantial capital inflows into Aave’s contracts. This influx boosts the TVL without the market cap fully reflecting it, pointing towards a potential undervaluation of the token. If this trend is driven by sustained capital inflow rather than transient yield farming, it could act as a bullish catalyst for Aave’s price and its protocol fundamentals.
Can Aave Hit $335 Next?
Adding to the optimistic narrative, crypto analyst Ali Martinez recently shared his insights on social media platform X, predicting a potential rise to $335 for Aave. Martinez’s analysis is based on Aave’s breakout from a falling wedge pattern on the four-hour chart. Falling wedges, characterized by two converging downward trendlines, are typically considered bullish formations. After being ensnared in this pattern since late August, Aave has finally broken free, positioning itself for a potential upward run.
Martinez believes that this breakout could propel Aave’s price to $335, a more than 5% increase from its current level. As of now, Aave is trading at approximately $318.5, reflecting a nearly 4% increase over the past 24 hours. This aligns well with Martinez’s optimistic forecast, suggesting that the token might have more room to grow.
The Broader Market Context
Aave’s recent price movement should also be viewed within the context of the broader cryptocurrency market, which has experienced a surge in recent days. This rally has been fueled by various factors, including renewed investor interest, positive regulatory developments, and a general sentiment of optimism surrounding digital assets.
Moreover, Aave’s resurgence comes at a time when DeFi platforms continue to gain traction. With more investors seeking decentralized alternatives to traditional financial systems, protocols like Aave are poised to benefit from this growing trend. The substantial capital inflows into Aave’s contracts, as evidenced by the positive divergence in the MC/TVL ratio, further underscore the protocol’s appeal to investors.
Balanced Perspectives: Risks and Opportunities
While the current outlook for Aave appears promising, it’s essential to acknowledge potential risks. The cryptocurrency market is notoriously volatile, and sudden price swings can occur without warning. Additionally, the sustainability of the recent capital inflows into Aave’s contracts is crucial. If these inflows are primarily driven by short-term yield farming activities, the positive impact on Aave’s price might not last.
On the flip side, if the capital inflows are indicative of long-term investor confidence in Aave’s protocol, the token could continue to experience upward momentum. Furthermore, the potential undervaluation suggested by the low MC/TVL ratio presents an opportunity for investors to capitalize on Aave’s growth prospects.
A Look Ahead
As Aave continues its upward trajectory, market participants will be closely watching for signs of sustained growth. The convergence of technical indicators, on-chain data, and broader market dynamics paints a hopeful picture for Aave’s future. Should the token maintain its current momentum, a rise to $335 could indeed be on the horizon.
In conclusion, Aave’s recent price surge and the positive divergence in its MC/TVL ratio signal a potentially bullish phase for the DeFi token. While risks remain, the current landscape offers a mix of opportunities and challenges for investors. As always in the dynamic world of cryptocurrencies, only time will tell how Aave’s story unfolds.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
