Aave Surges 5.8% in 24 Hours, Targets $325 Amid Record TVL and Institutional Interest

Aave ($AAVE) has experienced a significant 5.8% increase in value over the past 24 hours, challenging the $300 mark as the leading DeFi protocol with a Total Value Locked (TVL) of $26.47 billion. A bullish pennant formation suggests a potential rise to $325, provided buyers maintain key support levels. With growing institutional interest and liquidity at unprecedented highs, Aave's momentum may soon overcome the $300 resistance. Traders are closely monitoring for further confirmation, as a clear breakout could propel the next phase of the upward trend. According to CoinGecko, Aave's market performance is noteworthy, currently ranking 28th among all cryptocurrencies on CoinMarketCap. Its TVL has soared to a record $26.47 billion as of July 9, 2025, surpassing the combined TVL of its next 30 competitors across 17 blockchains. This achievement underscores Aave's dominance in the DeFi sector and reflects increasing trust in its security and efficiency. Market analysts are optimistic, speculating that AAVE could soon breach the $300 threshold, potentially reaching $325 and possibly rallying further to $400. Critical support is identified at $295, a pivotal level that could dictate the continuation or consolidation of the current uptrend. Aave also leads in flash loan volume, processing over $7.5 billion in the first half of 2025, and maintains a TVL exceeding $1 billion across Ethereum, Arbitrum, Base, and Avalanche. Beyond its on-chain achievements, Aave is influencing the future of finance at an institutional level. Founder Stani Kulechov's recent high-profile discussions at the White House and Capitol Hill highlight the growing recognition of DeFi's potential by U.S. policymakers. These discussions, focusing on stablecoin regulation and the GENIUS Act, aim to clarify the legal framework for stablecoins, reducing regulatory uncertainty and fostering wider adoption. The AAVE/USDT 4-hour chart indicates a bullish pennant pattern, suggesting a target near $325, supported by Aave's record TVL and institutional interest. Currently trading at $298.68, AAVE is just below the $300 psychological resistance, with the MACD line indicating sustained bullish momentum. Volume analysis reveals steady buying pressure, suggesting methodical position building rather than speculative trading. Traders are advised to watch the $300 level closely, as a confirmed breakout could trigger a rally towards $325, while failure to hold $295 may lead to a pullback before another breakout attempt.