Native token of decentralized finance (DeFi) lending platform Aave AAVE surged to its strongest price in several months on Monday

The bluechip DeFi token topped $330 during the session before cooling off at $316, gaining 8% over the weekend.

The rally came as the DeFi sector is heating up amid a broader crypto rally, with bitcoin BTC conquering fresh records above $120,000.

Aave is the dominant player in DeFi lending, and has just hit $50 billion in deposits on the protocol, a fresh record level.

The platform also poised to be one of the biggest gainers of advancing U.S. crypto regulations, analysts said.

«Aave is the biggest lending platform in decentralized finance (DeFi), and it could be a major winner from the GENIUS Act,» digital asset manager 21Shares said in a Monday report.

The platform currently holds 5% of all stablecoin supply to earn a yield, more than any other DeFi protocol, the report noted. It also issues its own, overcollateralized stablecoin GHO GHO, which has a $312 million supply.

Aave also aim to benefit from the growing institutional participation and tokenization wave with the upcoming Horizon project that will let institutions borrow stablecoins by posting tokenized real-world assets such as money market funds as collateral, the report added.

Technical analysis:

CoinDesk’s market analytics model highlighted a bullish structure for AAVE.

• Trading volume spikes to 159,078 units during morning session, confirming institutional accumulation and sustained buying pressure.
• Support base forms at $304.25-$305.63 during initial decline, providing foundation for subsequent rally phase.
• Resistance cluster develops around $327.40 where multiple rejection attempts create volume-weighted ceiling.
• Psychological support at $320.00 attracts consistent demand throughout consolidation period.

The price of XRP (XRP) is likely to swing wildly over the next week, rising or falling more than 10% during Crypto Week on Capitol Hill, the token’s implied volatility indicates.

Volmex Finance’s seven-day XRP implied volatility (IV) index jumped to an annualized 96% from last week’s 73%, a significant premium to the seven-day historical volatility of 42%. The elevated value translates to an expected 13% price swing for XRP over the coming seven days.

The market is pricing much lower volatility in bitcoin (BTC). The seven-day implied volatility for the largest cryptocurrency has increased only slightly to an annualized 46%, equivalent to an expected weekly price swing of about 6%.

The sharp rise in XRP’s implied volatility comes as the U.S. House of Representatives is set to review three major bills this week that could shape the digital assets industry.

The first is the GENUIS Act, which, if passed, would require stablecoin issuers to hold liquid reserves, accept annual independent audits and publish monthly transparency reports.

Also on the table is the CLARITY Act, which will clarify whether cryptocurrencies fall under the SEC or the CFTC’s purview. Lastly, there is the Anti-CBDC Surveillance Act, which will prohibit the Federal Reserve from issuing a retail central bank digital currency. XRP, declared as a strategic U.S. asset by the SEC, stands to benefit from regulatory clarity.

«The GENIUS Act and CLARITY Act are especially important for setting institutional ground rules — clarifying how stablecoins should be issued and overseen, and formally defining the roles of the SEC and CFTC in overseeing crypto markets. Together, these steps address one of the core barriers to institutional participation: legal uncertainty,» Javier Rodriguez-Alarcón, the chief investment officer at crypto liquidity provider XBTO, said in an email.

He added that the rulebook clarity will make long-term capital deployment viable, aligning the world’s largest economy with processes underway in regions like the UAE, where «defined frameworks are already unlocking tokenized markets.»

«If passed, these bills could open the door to wider stablecoin adoption, regulated tokenization, and on-chain financial products with full legal backing,» he noted.

Volatility is direction-agnostic

Note that the implied volatility is direction-agnostic, meaning the expected 13% swing may not necessarily be bullish and can unfold in either direction.

That said, XRP is currently exhibiting strong bullish momentum, trading over 5% higher on the day at $3, the level not seen since early February, according to CoinDesk data.

NEAR rallied by 6.7% in the past 24 hours as altcoins begin to heat up following bitcoin’s fresh record high at $123,000.

As investors anticipate a potential «altcoin season» several tokens like NEAR are reaping the rewards. NEAR jumped from $2.55 to $2.66 in the past 24 hours, representing a 7% range.

Support held firm at $2.51 before a breakout at 01:00 UTC driving prices up to $2.69 over the subsequent four hours.

It’s worth noting that NEAR remains well below its 2024 high of $9.00, which was spurred by hype around AI tokens following the launch of apps like chat bot apps like ChatGPT.

Technical Indicators Summary

• Support confirmed at $2.51 during consolidation phases.
• Buying pressure maintains above $2.62-$2.64 resistance-turned-support.
• Higher lows pattern establishes throughout recovery phase.
• V-shaped reversal completes with 143,188-unit volume spike.
• Breakout above $2.67 confirms bullish continuation.
• Next resistance targets $2.70-$2.72 levels.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.