AAVE price defends $120 demand zone as RWA deposits top $1B

AAVE is holding the $120 demand zone as real-world asset deposits on Aave cross $1 billion, indicating rising institutional demand.

Aave (AAVE) was trading at $123 at press time, up 0.6% in the past 24 hours. The token sits near the middle of its weekly range between $110.29 and $131.29.

It has gained 10% over the past week, though it is still down 21% in the last 30 days. The larger trend has been corrective since December highs near $200.

Spot activity cooled slightly. Trading volume reached $280 million in the last 24 hours, down 21% in the last day. In derivatives markets, CoinGlass data shows futures volume down 31% to $274 million, while open interest rose 2.53% to $203 million.

Rising open interest alongside softer volume suggests traders are building positions carefully rather than chasing momentum.

RWA deposits double as institutional interest grows

On Feb. 19, Aave revealed that deposits of real-world assets on its Horizon market surpassed $1 billion. According to posts from Aave and founder Stani Kulechov, deposits have doubled since January. This makes Aave the first lending protocol to cross the $1 billion mark in tokenized real-world assets.

Real-world assets include tokenized bonds and treasury-like products. Their rise shows that more institutional players are entering decentralized finance. For Aave, more RWA deposits can mean more borrowing and higher fees.

Revenue has grown sharply. In 2025, Aave DAO’s revenue surged to $142 million, exceeding the sum of the last three years prior. With more funds in its treasury, the DAO can invest in development, improve risk controls, and support token holders.

There is also a proposal called “Aave Will Win.” It would send all revenue from Aave-branded products to the DAO treasury. In exchange, Aave Labs would receive funding to build Aave V4 and hand over intellectual property to the community. If approved, the structure could tighten alignment between builders and token holders.

In addition, Grayscale Investments has filed to convert its Aave Trust into an exchange-traded fund listed on NYSE Arca. If approved, the move could expand access to traditional investors.

Aave also handled more than $450 million in liquidations between Jan. 31 and Feb. 5 without creating bad debt. That performance supported confidence in the protocol’s risk controls during volatile market conditions.

Aave price technical analysis

On the daily chart, AAVE is attempting to stabilize above the $115 to $120 demand zone. A recent dip toward $105 was quickly bought, forming a long lower wick. Price then reclaimed $115, which suggests buyers absorbed supply in that area.

The broader structure is still bearish. Lower highs and lower lows remain intact. A confirmed reversal would require a daily close above the $135 to $140 zone, which marks the most recent lower high.

Bollinger Bands show price moving back toward the middle band near $119 to $120 after touching the lower band around $103 to $105. The bands are starting to tighten, often a sign that volatility may expand soon.

The relative strength index dropped to near 30 during the recent selloff, but has recovered to around 45. Momentum has improved, but RSI has not crossed above 50. That level would signal stronger buyer control.

If AAVE holds above $120 and breaks $135, the next targets sit near $150 to $175. If $120 fails, price could revisit $105, with $95 to $100 as the next support area.