AAVE Plummets 15% in Four Days, But Bulls Charge In: A 20% Surge on the Horizon?

Buyers Scoop the Dip as Aave Protocol Gains Traction

Hang onto your hats, crypto fans! AAVE just took a wild 15% nosedive over four days, dropping from a high of $283 on May 27 to a low of $240 today. But don't panic yet—the bulls are back in town, snapping up the dip and pushing AAVE back up to $254 before it settled at $251. Talk about a rollercoaster!

This rebound isn't happening in a vacuum. The Aave protocol is buzzing with activity, especially thanks to the skyrocketing tokenized yield markets in cahoots with Pendle and Ethena. It's like a DeFi party, and everyone's invited!

On May 27, Aave threw open the doors to three new collateral types: eUSDe, July-maturity PT-USDe, and August-maturity PT-eUSDe, with a whopping $700 million market size right out of the gate. The very next day, Pendle launched two of these markets, capping PT-eUSDe at $100 million and PT-USDe at $40 million. And guess what? They filled up faster than you can say "blockchain"! Pendle had to up the ante to $200 million and $80 million on May 29, and bam—they filled up again in a flash. It's clear as day: people are hungry for these tokenized yield goodies on Aave.

Listen up, because this is wild: Caps for PT-eUSDe (Aug 2025) and PT-USDe (July 2025) went up, and they filled within hours. Pendle PTs are now rocking a total supply of $1.32 billion on Aave. That's some serious demand right there!

So, what are these PT tokens? They're like golden tickets, representing a fixed-yield claim on assets locked up in the Pendle protocol. They let users trade and cash in on future yields by splitting their assets into principal and yield. Ethena's PTs hit Aave a month back, but the new eUSDe, July PT-USDe, and Aug PT-eUSDe joined the party on May 27.

Now, these PT tokens might not directly pump AAVE's price, but they sure are bringing the heat to Aave's DeFi platform. More users, more assets, more action—all of this ramps up Aave's TVL. As of May 20, Aave was holding strong at 20% of the entire DeFi sector's TVL. That's no small potatoes! More TVL means better governance power and investor confidence for AAVE holders. It's like watching a DeFi empire grow right before your eyes.

But wait, there's more! AAVE is eyeing a potential 12%+ move from its current perch at $251, with its sights set on $283. That recent dip? Just a healthy breather in the grand scheme of things, setting up a higher low in this bull run.

Once AAVE smashes through that $283 resistance, all eyes will be on the big $300 mark—a level that's held strong support during past rallies in December. If AAVE hits $300, we're talking a near-20% jump from where it's at now. Buckle up, because it's going to be one heck of a ride!