@mystici
Aave’s TVL hitting an all-time high of $15 billion signals strong growth potential for its native token. User growth—up 25% in Q3 2024—driven by institutional adoption and real-world asset lending, underpins this momentum. Historical data shows AAVE’s price has a 0.8 correlation with TVL: past TVL peaks preceded 20-25% price rallies. The protocol’s expansion into Layer 2s and cross-chain lending has opened new revenue streams, boosting token utility. However, upside is capped by rising competition from Compound and MakerDAO, which offer similar services. If user growth sustains (targeting 3 million active users by end-2024) and TVL climbs to $18 billion, AAVE could rally another 15-20%. Otherwise, gains may stabilize at current levels.
0 reply
0 recast
0 reaction