The AAVE protocol has reported a significant surge in earnings, reaching $13.15 million in the current quarter, marking its fifth-highest level since inception in 2020 and the third-highest for 2025. This growth is supported by fee generation climbing to $124.59 million, reflecting heightened protocol activity and usage.
Despite these positive fundamentals, the Total Value Locked (TVL) experienced a sharp outflow of $682 million in a single day, reducing the TVL to approximately $32.23 billion. Investors who earned $27.3 million from AAVE holdings have been exiting, shifting funds to stablecoins and contributing to a decline in trading volume, which hit its lowest since November 2.
However, derivative markets show a strong bullish bias, with the Open Interest Weighted Funding Rate positive at 0.0081% and the Long/Short Ratio at 1.026, indicating dominant long positions. Spot retail investors purchased $1.03 million worth of AAVE in the last 24 hours, and $8.89 million this week, though this falls short of the large-scale sell-offs.
Network activity has surged, with Daily Active Users jumping 55% to 29,400 and transactions rising 21% to 65,200. Technical analysis points to a potential rally toward $245, supported by increasing accumulation and positive Bollinger Band signals.
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