Driven by the growth in the number of users and the expansion of DeFi market share, the price of aave has risen.

The foreign exchange reserves of stablecoins have increased.

The price trend of aave has broken the 4-hour trendlines.

The cryptocurrency market recently experienced a significant downturn, but aave [AAVE] has shown resilience. In August, while other cryptos were struggling, the price of aave soared.

As one of the best-performing DeFi protocols in recent months, aave's user numbers and market performance have steadily increased.

The foreign exchange reserves of stablecoins have increased, particularly USDT, indicating that these funds are about to inflow into the market.

Typically, when the holding amount of stablecoins increases, it indicates increased purchasing power, which may have a positive impact on aave's price, pushing it up.

Aave is preparing to break out

The recent price trend of Aave reflects its growth. Despite some selling by the founder, the token still shows strong accumulation and potential for upward movement.

On a higher time frame, AAVE has faced resistance near $140 several times. Currently, the 4-hour chart has broken the downtrend line and retested successfully.

However, the price faces a key challenge in breaking the $154 cycle high. If Aave breaks this level, price targets of $200 and $260 are more likely to be achieved.

Achieving these targets will depend on the positive trend in the altcoin market. The total market value of altcoins is currently at a critical uptrend line, maintaining this support level indicates further price increases.

Exchange GHO for other cryptocurrencies

Aave's stablecoin GHO is also gaining attention. After a difficult start in 2023, GHO is now showing promise.

GHO is backed by Ethereum V3 assets, with a circulation of 0.1365 billion and 2040 holders. Aave has expanded GHO beyond Ethereum and launched it on Arbitrum.

Many users borrow GHO at low rates using stablecoins, and exchange it for other cryptocurrencies or stablecoins like sDAI to obtain higher returns.

This strategy has put some pressure on the peg of GHO, causing it to deviate from the value of $1. However, its new Merit program aims to address this issue by encouraging users to hold or stake GHO.

The program offers rewards, including a high APR of up to 19.32%, and incentivizes liquidity retention within Aave. As a result, the stability of GHO's peg has improved, and its supply has also increased.

With the growth of TVL, Aave DAO has deployed EtherFi.

Aave DAO recently deployed a dedicated EtherFi market, allowing users to borrow stablecoins such as USDC, PYUSD, and FRAX using EtherFi's weETH liquidity staking tokens.

It continues to lead in the DeFi space and expand to layer 2 solutions like ZKsync and Linea. While other assets struggle, it is still able to maintain a bullish momentum, highlighting its strength in the DeFi space.

Its total value locked (TVL) has also grown to $10.7 billion, with new user activity, especially from Base users, skyrocketing, further boosting its prominence.