DeFi Lending Enters High-Debt Regime as Active Loans Hold Near Cycle Highs
- Sustained Borrowing Demand: Active loan balances across DeFi protocols have surged from low single-digit billions in early 2023 to approximately $35-$40 billion by Q1 2026, indicating persistent borrowing demand and a maturation of the lending market.
- Aave Dominates Market: Aave consistently leads in active loan volume each quarter, forming the backbone of DeFi borrowing activity, and its market share expands alongside total market growth, highlighting structural dependence during real load conditions.
- Emergence of Morpho: Starting in 2024, Morpho's market segment grows steadily, absorbing incremental demand through more efficient routing and vault-based structures, suggesting borrowers are increasingly focused on optimizing execution rather than merely seeking liquidity.
- Diversification of Borrowing Demand: The combined contributions from protocols like Maple Finance, Fluid, and Spark indicate that borrowing is no longer concentrated in a single protocol, enhancing system resilience and expanding lending activities across chains and use cases.
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Technical Analysis for AAVE
Technical Sentiment Analysis for Aave (AAVE) As of , Aave (AAVE) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 3 technical signals, shows that 0 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for AAVE stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, AAVE is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Aave (AAVE) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 37.329 | 64.79 | 92.879 | 120.34 | 148.429 | 175.89 | 203.979 |
| Fibonacci | 64.79 | 86.01 | 99.12 | 120.34 | 141.56 | 154.67 | 175.89 |
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