AAVE price climbed above $260 on Could 20 after spiking 27% WTD, outpacing most large-cap DeFi tokens. The surge adopted Bitcoin’s transient push previous $107,000 and Ethereum’s climb above $2,500, signaling renewed confidence within the broader crypto market. Danger-on sentiment seems to be again in play, with altcoins and DeFi names drawing capital inflows after weeks of subdued motion.

The transfer comes as whole worth locked (TVL) in DeFi protocols rises in tandem with Ethereum’s Layer 2 development and hypothesis across the Pectra improve. AAVE, specifically, has benefited from recent whale exercise and improved on-chain borrowing exercise, each of which have helped reinforce its current price momentum.

Nevertheless, even because the protocol enjoys renewed market consideration, a unique narrative can also be rising—one that would problem AAVE’s place within the DeFi lending hierarchy. But these features aren’t occurring in a vacuum. The venture not too long ago impressed a wave of consideration each on-chain and on X, due to a $150,000 safety contest for its V3 deployment on Aptos, and a TVL surge pushing practically $30 billion.

AAVE Competitors and TVL Surge Fuels Momentum

AAVE is again within the highlight. Two main developments previously 48 hours have pushed the token to the highest of social feeds and protocol charts.

First is the Aptos competitors. Safety platform Cantina introduced a $150,000 prize pool on Could 19 for reviewing AAVE V3’s deployment on Aptos. It’s AAVE’s first transfer exterior Ethereum-compatible chains. The code is written in Transfer.

The competition ends on June 9. Researchers are anticipated to probe the brand new collateral mechanisms, liquidation logic, and reward incentives. The objective: stress take a look at AAVE earlier than its mainnet launch on Aptos. Key Aptos figures, together with Avery Ching, have backed the initiative on X.

The marketing campaign is already seeing engagement from Aptos Labs and Transfer builders. This isn’t simply advertising and marketing—it’s a full-scale safety audit powered by open incentives.

The second catalyst is the protocol’s rising TVL. Based on The Block and DefiLlama, AAVE’s TVL has surged to just about $30 billion—up from $20 billion earlier this 12 months. That’s a 50% improve.

It additionally makes AAVE the second-largest dApp by TVL and the highest lending protocol on Ethereum. Lively loans stand close to $10 billion. The debt-to-TVL ratio is round 33%. Every day charges have crossed $1 million.

Collectively, these two elements are driving momentum. The Aptos rollout provides technical credibility. The TVL development reveals person belief. AAVE is trending once more—and never simply due to price.

Bulls Take a look at Key Resistance As RSI Flashes Warning

AAVE price prolonged its rally to $264 on Could 20, closing in on a serious resistance degree close to $278. The token gained over 45% in Could alone, pushed by sturdy on-chain metrics and renewed DeFi curiosity. The present leg increased comes after bulls reclaimed the $233 resistance, which now acts as help. That degree had capped price motion in April and early Could.

Worth has flipped all key exponential shifting averages. The 20, 50, 100, and 200-day EMAs now sit beneath present price ranges, confirming a bullish construction. The 0.382 Fibonacci degree close to $233 supplied the final breakout set off. The following resistance sits close to $278, marked by the 0.618 Fib retracement degree. A break above this zone may goal the $310 degree subsequent, which aligns with the 0.786 Fib zone.

Quantity has picked up, however not considerably. RSI presently reads above 75, suggesting overbought circumstances. Momentum is powerful, however profit-taking danger is rising. If AAVE price fails to interrupt above $278, a pullback towards $255 stays attainable. That’s the 0.5 Fib degree and a key midpoint between the April highs and present vary.

Total, the pattern stays bullish. The construction favors continuation so long as AAVE holds above $233. However the zone between $278 and $310 may act as a provide pocket, particularly if market-wide momentum fades. Merchants ought to look ahead to RSI divergence or high-volume rejection close to $278 as early reversal cues.