What Drives the Value of the AAVE Token?

[AIcash]

The value of AAVE is closely tied to the adoption and performance of the Aave lending protocol. Factors such as total value locked (TVL), borrowing demand, expansion to new chains, and institutional usage all influence how the market prices the token.

Governance relevance also plays a major role: as Aave grows more complex and systemically important within DeFi, control over its parameters becomes more valuable. For many holders, AAVE represents not just exposure to DeFi growth, but ownership in one of the sector’s core financial infrastructures.