On September 29, Aave’s token AAVE surged over 17%, climbing from approximately $149 to above $175. The rally broke through the asset’s September highs near $155, continuing a steady advance that began in mid-August from below $90. AAVE now trades above key moving averages, signaling sustained strength. The price increase occurred despite ten-year U.S. Treasury yields rising above 5%—levels unseen since 2007—which typically draw capital away from decentralized finance platforms. A day earlier, on September 28, an Aave risk proposal recommended adjusting borrowing conditions, including raising the USDe borrowing rate from 6.3% to 6.6%. Analysts described the move as routine rather than a direct catalyst for the price jump, attributing the surge to continued demand for DeFi tokens.
AAVE climbed more than 17% on September 29, rising from around $149 to above $175. The rally placed the token well beyond its previous highs made in September.
This advance occurred even as U.S. government debt offered yields north of 5%. Safer yields from Treasuries have hurt the DeFi space as investors feel less incentive to invest.
AAVE had already been gaining before its last jump. It traded under $90 in mid-August but crossed the $120, $140 and then $150 price levels.
The latest rally built on a steady climb rather than a one-day spike. After passing the $150-$155 region—where earlier rallies had been rejected—AAVE reached the $175 mark.
The token was trading above its major price averages, showing strength over both recent and longer periods. AAVE may now approach the $180 price level, another big round figure where people tend to stop and take profits.
Should it experience a pullback, the critical question is whether buyers return around the $150–$155 area. If it holds that area, the former ceiling would become a floor; a fall below could mean the rally moved too quickly.
AAVE’s rise comes during a difficult period for lending platforms. The ten-year Treasury yields have moved above 5%, reaching levels not seen since 2007.
These returns compete with DeFi platforms for capital. Investors might question whether lending stablecoins through blockchain platforms is worthwhile if government bonds offer similar returns at a fraction of technical and market risk.
On September 28, an Aave risk proposal recommended adjusting the borrowing conditions of some assets. One proposed change would raise the borrowing rate for USDe from 6.3% to 6.6%, based on recent borrowing activities, available liquidity, and the health of open positions.
There were no clear signs that a routine adjustment led to the price surge in AAVE. The hike is best termed as continued demand for new tokens in DeFi, yet it occurs against the backdrop of increasing competition from traditional markets.
