AAVE Stays Above $90 While Protocol Deposits Hit Records

Aave is currently holding above the $90 mark, sitting just past its 50 day moving average. This steady performance comes as activity on the protocol hits new highs. Deposits in Aave V3 on the Monad network grew by over $500 million recently, while Aave V4 deposits climbed to a record $350 million. Much of this interest is linked to competitive borrowing rates for major assets like USDC and wrapped Bitcoin.

Despite this growth in network usage, interest in the AAVE token itself is struggling among retail traders. Futures open interest has dropped by 6 percent, and current data shows that short positions outnumber long positions. This suggests that while people are using the lending platform, they are not necessarily rushing to buy the token.

Technically, the price is in a tricky spot. While it is staying above its short term support of $90, it still trades below the 200 day average of $112. The market is showing signs of bearish momentum, and traders are watching the $90 level closely. A drop below this could lead to further losses, while a push past $100 would be the first step toward a more positive trend.