Aave’s Total Value Locked (TVL) has reached a new high, reflecting strong adoption in the DeFi lending space. As of March 12, 2025, its dominance in lending markets, with $7.4 billion in active loans, supports potential price upside for AAVE. The token’s recent tokenomics shift—reducing inflation and redistributing revenue to stakers—enhances its value proposition. User growth trends remain robust, driven by multi-chain expansion (e.g., Sonic, Scroll) and features like GHO stablecoin adoption. Despite a bearish market, stablecoin deposits in Aave are near all-time highs, indicating sustained demand. Historically, AAVE hit $666 in 2021; with improved fundamentals and a 93% circulating supply, analysts see room for a new ATH, potentially exceeding $500, contingent on broader DeFi growth and market sentiment. However, competition and regulatory risks could cap gains.