Without much further ado I present to you another favourite crypto asset of mine at the moment, which is Aave. The thing is that Aave digital token is initially related to a decentralized lending platform. It allows crypto adepts to borrow and lend against crypto collateral without any involvement of traditional banking institutions. This is the so-called DeFi (Decentralized Finance) system, which has a potential to gain more rising momentum as interest rates in the Euro and the US Dollars would go down further. The project is based on the Ethereum blockchain to operate through smart contracts' mechanisms in order to ensure the automatic execution of transaction terms. The current market cap is over $3 billion. The maximum supply of Aave tokens is algorithmically capped at 16 million, with about 80% of those already in circulation. This cap helps maintain the value of the token. Aave tokens can be staked through special security modules, which acts as a joint insurance fund to reduce risks where the token holders receive additional rewards for helping to secure the protocol.

The highly reputable Bernstein investment house believes that Aave has a chance to exceed $300 by 2030, as lending yields for stablecoins are ranging from 3.7% to 3.9%. The fact that the Federal Reserve is gearing up to cut interest rates later through 2025 makes DeFi yields more attractive again, they said, being a catalyst to reboot crypto credit markets. "For example, if plain vanilla lending USDC stablecoin offered a 3% yield, the free token incentives would juice the yield to 15-20%," the same group of analysts explained in late 2024, even though these high yields could be unsustainable, of course. As interest rates increased in 2022-2023, even standard USDC yields became less attractive compared to US money market yields, but the situation may transform in favour of credit tokens when interest rates become lower. This means the crypto lending markets are waking up. Aave is surely the largest lending market based on Ethereum. Bernstein noted that the number of unique monthly DeFi users has approximately tripled or quadrupled in 2023-2024, with the supply of fiat-backed stable coins in circulation hitting a new high of $158 billion by September 2024.

Many analyst estimates on Binance crypto platform are $100 to $150 higher, while the asset has already grown from nearly $180 to more than $260 since the beginning of May, that is, by a total of 44%, including a sudden spike in demand to drive Aave by around 20% over the past 24 hours. I don’t know about you, but I’m ready to join this crowd of those thirsty for quick money on any minor 3% to 5% intraday corrective move in Aave. With the rising flag's technical pattern on H1 and H4 charts here, freshly broken upside today, my chances of a successful outcome are even higher.