Aave V4 Prime’s active loans surpassed $4 million and on August 3 the team highlighted product features like no rehypothecation and USDC borrow incentives (as low as -0.2% for cbBTC/WBTC/WETH/wstETH); WalletConnect H1 2026 data reports tens of billions flowed into Aave across 14,655 wallets, 197,501 transactions, 161 countries and 22 blockchains, underscoring DeFi adoption and lending demand. AAVE trades above its 50-day EMA with the 50/200 EMA gap narrowing, suggesting a potential bullish crossover toward the $110 200-day EMA, though $110 could act as resistance and a rejection might push price back toward $90, presenting near-term technical risk for the token.

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AAVE price is drawing renewed attention as the protocol’s fundamentals continue strengthening despite broader market uncertainty. While crypto markets remain volatile, Aave V4 Prime has quietly reached a new milestone, suggesting demand for its lending platform is growing even as traders remain cautious about the token’s next move.

Prime Loans Reach Fresh Milestone

Aave V4 Prime’s active loans have now surpassed $4 million, marking a new all-time high. The Prime Hub supports loans backed by blue-chip collateral, including ETH and BTC-correlated assets.

On August 3, Aave’s co-founder attributed the growth to the product’s appeal, highlighting features such as no collateral rehypothecation, no tokenization, and USDC borrow incentives. Separately, another market participant described Aave V4 as attractive because users holding cbBTC, WBTC, WETH, or wstETH can borrow USDC at a -0.2% rate, effectively creating borrowing incentives.

Ecosystem Activity Keeps Expanding

The lending platform isn’t relying on one product alone. WalletConnect’s H1 2026 data showed tens of billions flowed into Aave through its network across 14,655 unique wallets, 197,501 transactions, 161 countries, and 22 blockchain networks.

That level of activity suggests both institutional and retail users continue utilizing Aave’s infrastructure despite ongoing market volatility, reinforcing the platform’s position as an active DeFi protocol rather than one struggling to retain users.

AAVE Price Tests Important Technical Zone

While the ecosystem continues expanding, AAVE price is attempting to reflect that momentum. The token currently trades above its 50-day EMA, while the gap between the 50-day and 200-day EMA continues narrowing.

If buying demand continues strengthening, a future bullish crossover could develop, placing the $110 level, which aligns with the 200-day EMA, into focus. However, that area could also become strong resistance. A rejection near $110 may push AAVE price back toward $90 or even lower, making the next technical test particularly important.

Read the article at Coinpedia