Aave surges on Bitcoin and Ethereum rally

Aave (AAVE) rose more than 22% as the crypto market witnessed a sharp recovery for Bitcoin and Ethereum prices. With BTC bouncing to above $105k after amid a volatile start to the week, Ethereum recaptured the $2,500 level to leave bears nursing pain after failing to strengthen around $2.3k. The gains for the top two digital assets by market cap helped altcoins higher. Aave price rose sharply, outpacing top 100 coins by market cap with 22% increase to highs of $269. It’s AAVE’s highest level in three months. The surge saw bulls retest a key level that could be important to buyers if the uptrend continues. QCP Group posted on X: As equities wobble under a cautious Fed and a Moody’s downgrade, Trump is feeling the heat — lashing out at Walmart and even hinting at a trip to China to revive trade talks. But amidst the macro noise, Bitcoin is holding steady. Why is Aave price spiking? As noted, most cryptocurrencies pumped after seeing a notable dip early Monday. But as the market reacted to regulatory developments in the United States, BTC shot up. ETH followed suit, and a cascading effect had buyers taking the dip as opportunity. However, Aave price also spiked as the decentralized finance protocol hit a key partnership milestone. On May 19, the Aave team announced that its integration with Aptos was live. “Aave’s v3 deployment on Aptos introduces a new era of cross-chain lending logic, rewritten in Move and ready for review,” the Aave team noted. It marks a new era for DeFi market’s leading protocol. Significantly, Aave has seen it’s total value locked skyrocket to a new all-time high. On May 12, 2025, the Aave TVL surpassed $40 billion, the highest ever mark for a DeFi protocol. AAVE’s TVL is almost four times that of the centralized finance lending market. “The TVL of CeFi lending: ~$11 billion. The TVL of AAVE: ~$39 billion,” crypto analyst The DeFi Investor pointed out recently. A single dApp has almost 4 times more TVL than CeFi lending sector. What next for Aave price? Crypto market outlook, Aave protocol growth and the Aptos integration are some of the current catalysts for the altcoin. Gains means bulls may eye $300 and then December 2024 peak of $383. Aave price has a year to date high of $275. If profit taking derails bulls, key support would be around $200 and then $175. The post Aave surges on Bitcoin and Ethereum rally appeared first on Invezz

Source: Invezz