Why Is AAVE Pumping? $1T Borrow Target Fuels Rally

TL;DR 

• AAVE gains 14% in 7 days as cumulative borrows edge toward the $1 trillion mark.
• Aave dominates DeFi with 22% of total TVL, surpassing Lido in protocol share.
• The price nears $300 as technical indicators show strength, trading above the Bollinger midline with rising volatility.
• Analyst says AAVE’s timing aligns with monthly pivot pattern, keeping bulls on alert.

AAVE Approaches Major Borrowing Threshold

Aave (AAVE) was trading at roughly $300 at press time, reflecting a 6.41% increase in the past 24 hours. Over the last 7 days, the price has gained 14.16%, with a market capitalization of approximately $4.54 billion based on a circulating supply of 15 million tokens.

Trading volume has also picked up, with $494.6 million recorded in the last 24 hours. The current daily range is between $280.39 and $300.84, showing sustained interest and strong upward movement from traders and investors.

Consequently, Aave’s total cumulative borrow volume has reached $775 billion, according to a recent update from the protocol. “Trillions next,” the Aave account posted on X, suggesting continued growth and borrowing activity on the platform.

Hit $775B cumulative borrows.

Trillions next. pic.twitter.com/B8dnowP7i1

— Aave (@aave) July 8, 2025

DeFi analytics platform DefiLlama reports that Aave now represents 22% of total DeFi TVL and 46% of TVL within the lending sector. The current TVL across all DeFi platforms stands at $26.426 billion. Aave leads with the largest share, overtaking Lido, which has seen a decline in its dominance within the staking category.

Technical Setups Show Bullish Strength

Looking at the daily chart, AAVE is currently trading near the upper Bollinger Band. The bands are expanding, indicating increased volatility and the possibility of a continued trend. The price remains above the midline of $266.38, a sign that bullish pressure is still active.

Chaikin Money Flow (CMF) is at +0.10, pointing to mild positive inflows. A reading above zero reflects buying activity, though current strength remains moderate. If CMF rises further, it could support a stronger move upward.

Analyst Sees Monthly Timing Patterns Align

Crypto analyst Jip Molenaar noted that AAVE often forms its first monthly pivot in the first six days. 

“Around 58% of months the last 5 years form the first pivot early,” they said. 

The second pivot usually appears during the final nine days, which could align with the current market setup.

Meanwhile, with more than two weeks left in the month, traders are watching closely. The price action around this timing window may help define the next direction as AAVE edges closer to key resistance at the $300–$310 zone.