Aave (AAVE) Rises Over 10% as Tokenized Asset Lending Market Gains Momentum

Aave’s governance token AAVE emerged as one of the weekend’s top performers in the crypto market rebound, surging over 10% on Monday to briefly surpass $230. The decentralized finance (DeFi) lender’s token ranked second only to Chainlink’s (LINK) in gains among the CoinDesk 20 Index assets, highlighting renewed investor confidence across leading DeFi protocols.

Despite a short-term pullback, AAVE maintained strong momentum, consolidating above $225 as traders took profits following the rapid climb. Technical indicators continue to signal a bullish trend, with the token holding firmly above key support levels even after facing resistance around $231.

Beyond price action, Aave is strengthening its position in the rapidly expanding tokenized asset lending market. Grove, an onchain capital allocator affiliated with Sky (SKY), recently announced plans to supply RLUSD and Circle’s USDC stablecoins to Horizon, Aave’s new institutional lending platform. This initiative enables qualified borrowers to post tokenized real-world assets (RWAs)—such as U.S. Treasury tokens—as collateral.

Pending governance approval, the partnership aims to deepen liquidity for institutional borrowers, potentially unlocking new forms of onchain credit. Horizon already accepts collateral from issuers like Superstate and Centrifuge, with Chainlink providing valuation data and Llama Risk and Chaos Labs delivering third-party risk assessments.

If approved, Grove’s integration could significantly advance Aave’s mission to transform tokenized assets into functional capital, bridging traditional finance and DeFi ecosystems. With growing institutional interest and solid technical fundamentals, AAVE continues to stand out as a leading player in the evolving landscape of decentralized lending and onchain asset markets.