Aave V4 deposits surpass $900 million amid rising utilization

Aave V4 has seen significant growth, with deposits surpassing $900 million and active loans reaching $280 million. This increase in the deposit base, which has grown by over 100% in the last month, has led to higher utilization rates and increased on-chain activity, including a rise in active addresses.

Technical indicators for the AAVE token show a bullish golden cross between the 50-day and 200-day EMA bands. While the token faces a key support level at $120, analysts suggest that clearing $160 could lead to a target of $240. However, a breakdown below $120 could result in prices slipping toward $85 or $60.

In the broader context of decentralized finance (DeFi), the volatility of yields remains a critical risk factor. Current yield aggregators often provide only snapshots of current APY, failing to show historical rate series. Understanding whether a yield is stable or subject to wild swings caused by utilization rate dynamics, token emissions, or liquidity shocks is essential for capital deployment decisions.