Aave v4 Details: Aave Is King of DeFi, Is $650 Inevitable?

[Redator]

Aave v4 is still in development and testing, but once activated, it could cement the protocol’s position in DeFi. Is AAVE crypto set for $650 after this upgrade?

Nearly 10 years ago, no one thought it was possible to borrow, lend, or earn interest trustlessly.

Then Ethereum happened, and by late 2018, decentralized liquidity pools had transformed how tokens could be traded. Following the release of Aave v1 in early 2020, the DeFi protocol has grown by leaps and bounds. It is now the largest by total value locked (TVL).

According to DeFiLlama data, Aave manages over $26 billion in diverse assets across 18 chains, primarily Ethereum. On Aave, token holders can borrow against their assets, and lenders can lend tokens to earn competitive interest.

(Source)

The Aave ecosystem also includes a stablecoin, GHO, and a governance token, AAVE ▲1.98%, which, as of mid-2025, ranks among the best cryptos to buy.

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AAVE Crypto to $650?

On June 17, Aave Labs, the developer of Aave, unveiled Aave v4, an upgrade that could boost the DeFi protocol.

As expected, while the update will enhance protocol efficiency, the focus is on its impact on AAVE prices and whether AAVE will surge to reclaim all-time highs.

From the AAVE weekly chart, it is clear that buyers hold the upper hand. Although bulls have yet to break above 2024 highs of around $400, momentum is building.

After dropping to nearly $110 in mid-April 2025, the token rebounded sharply, doubling to over $275 at press time. The local resistance is at last week’s highs. If $350 is breached with rising volume, AAVE could break $400 and march toward all-time highs above $650.

Aave

Price

Market Cap

AAVE

$4.23B

24h7d30d1yAll time

This upward momentum is bolstered by Aave’s dominant position in the DeFi market.

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Aave v4 Details

However, the catalyst for growth will be Aave v4, scheduled for release in the coming weeks or months.

Clearly, Aave v4 is not a routine upgrade. Analysts view it as a bold leap toward making the broader DeFi ecosystem more scalable, modular, interoperable, and liquid.

Currently in development and testing, Aave v4 introduces a Unified Liquidity Layer that enables seamless liquidity movement across blockchains without relying on third-party bridges.

Aave V4 will position Aave as the most builder-friendly and comprehensive onchain lending infrastructure in DeFi.

We've published a blog post detailing how it works and what to expect.

Read it below ↓ pic.twitter.com/upWvvwmXnT

— Aave (@aave) June 16, 2025

Cross-chain bridges are often weak points, as seen in various disastrous hacks, such as the Ronin bridge hack.

Aave addresses this by using Chainlink’s CCIP for faster and more secure asset transfers while ensuring Aave v4 remains modular and adaptive.

Additionally, Aave v4 plans to introduce dynamic interest rates using Chainlink Oracle data. The goal is to optimize yields for lenders and costs for borrowers based on real-time market conditions. This update pushes Aave closer to a decentralized, fully automated, and highly efficient money market.

Another notable enhancement is the improvement of GHO. The algorithmic stablecoin will be upgraded to include soft liquidations and an emergency depeg redemption system, which could attract more users, including investors of some of the best meme coin ICOs.

Anti-GHO Mechanism and USM

Ahead of this, Aave recently introduced the anti-GHO mechanism. This deflationary system uses ERC-20 tokens to offset GHO debt and incentivizes holders to stake.

Aave's new Safety Module, Umbrella, is live.

Umbrella introduces aToken staking, making it easier to manage risk and avoid bad debt without relying on governance.

Staking is now available on the Aave app. pic.twitter.com/8QRWr4qH8F

— Aave (@aave) June 5, 2025

Moreover, on June 5, the DeFi protocol released the Umbrella Safety Module (USM), allowing users to stake aTokens and automatically cover protocol risks, potentially making Aave more resilient.

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Aave v4 Details: Will AAVE Crypto Soar to $650?

• Aave is a decentralized money market and the largest DeFi protocol 
• AAVE crypto is among the top performers in 2025. Will it break $650? 
• Aave v4 is set for activation in 2025 
• Anti-GHO mechanism and USM activated ahead of this key upgrade 

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