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AAVE V4 Launch Sparks Market Momentum as DeFi Adoption Gains Speed

By Published On: October 24, 20253.5 min readViews: 330 Comments on AAVE V4 Launch Sparks Market Momentum as DeFi Adoption Gains Speed

Jakarta, Pintu News – After years of establishing its dominance in the decentralized financial lending [DeFi] space, Aave is now entering a growth phase that could be its most rapid so far.

Through the launch of Version 4 (V4), a $50 million token buyback program, and an ambitious expansion into real-world assets (RWA), Aave has further strengthened its position as a leader in the industry.

V4 – Strategic Milestones that Define Aave’s Future

Data shows that Aave (AAVE) currently controls around 82% of total loan debt on the Ethereum (ETH) network, the highest figure in its history. This market share has grown steadily over the past four years, surpassing competitors such as Morpho, Spark, and Compound (COMP).

Read also: BNB Price Poised for $1,500 Rally as Coinbase and Robinhood Listings Boost Market Confidence

In addition, the protocol currently supports around 1,000 unique borrowers every day and manages around $25 billion in active loans. Aave’s trading volume over the past 30 days has also reached around $226 billion.

According to data from DefiLlama, Aave remains the largest lending protocol in the DeFi world, with Total Value Locked (TVL) reaching approximately $36.5 billion.

Source: DeFiLlama

The upcoming launch of Aave V4 is seen as a revolutionary major upgrade. This version introduces the Unified Liquidity Layer – a unified liquidity layer that optimizes capital efficiency across multi-chains while lowering transaction costs.

Aave is also working to deepen the integration of its own stablecoin, GHO, to improve internal liquidity flows and reduce reliance on external liquidity.

Meanwhile, Aave continues to expand its influence through initiatives such as Aave Horizon, a specially licensed RWA (Real-World Assets) marketplace aimed at institutional investors. In addition, a $100 million restructuring plan is also geared towards strengthening the GHO ecosystem.

This series of strategic moves reflects Aave’s determination to bring together the advantages of DeFi with traditional finance. This brings Aave closer to its long-term goal: to become the global liquidity bank for the Web3 era. Today, Aave even ranks among the 40 largest banks in the US by asset size.

$50 Million Annual Buyback: AAVE Momentum Driver

The community is currently scrutinizing the $50 million annual buyback proposal recently introduced by the Aave DAO. This initiative is designed to support the AAVE token price as well as reinvest funds into the DAO’s coffers, thus strengthening the financial resilience and long-term sustainability of the Aave ecosystem.

Read also: HBAR Crypto Still Standing: A Glimmer of Optimism Amid Widespread Market Pessimism

Previously, Aave routinely bought back about $1 million worth of tokens per week. If the new proposal is approved, the buying pressure could double to around $2 million per week.

According to market analyst Ali Charts, the $135 price level is now a kind of “price magnet” for AAVE, reflecting the increasing bullish sentiment after a series of positive updates.

However, not all analysts believe that the growth path ahead will be smooth. Some technical experts warn that AAVE’s current chart pattern resembles a distribution phase, which is often a sign of a price correction before the next big run-up.

“Be careful when trying to buy on dips or when prices sweep support-the distribution phase usually ends with a long-term downward trend,” said one analyst.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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