Aave sees record V4 deposits and Grayscale institutional backing

Aave is experiencing significant protocol growth and institutional interest. The Aave V4 protocol has reached a milestone of over $400 million in deposits, marking an all-time high for the decentralized finance lending platform. Additionally, the protocol expanded to the Avalanche network in July.

From an investment perspective, Grayscale has allocated nearly 20% of its quarterly rebalanced crypto lending fund to AAVE, providing a significant institutional endorsement. While the token has faced recent price volatility and resistance levels, analysts note a long-term accumulation phase of nearly 200 days, which may indicate tightening supply and potential for a bullish reversal.