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Despite bearish sentiment in the crypto market, Aave witnessed a spike of around 13% on a daily chart, soaring its value above $93.
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The spike comes after Aave team members revealed a plan to target the securities lending market through tokenized stocks on V4.
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On Friday, the U.S. launched strikes against Iran in retaliation for drone attacks on cargo ships in the Strait of Hormuz, sparking fear in the crypto community.
While the overall cryptocurrency market looks calm, Aave (AAVE) experienced a spike of around 13% on June 26 following Aave’s new plan to target the securities lending market with tokenized stocks.
At the time of writing this, the cryptocurrency is trading at around $93.32 after soaring over 13.5% on a daily chart, according to CoinMarketCap. The cryptocurrency is currently holding a market capitalization of around $1.44 billion, thanks to the daily trading volume of $529 million.
The upward momentum in Aave comes amid the bearish sentiment in the crypto market after Bitcoin dropped below $60,000.
Aave Plans to Target $4.6 Trillion Securities Lending Market
On June 26, Aave founder Stani Kulechov revealed that the lending protocol is expanding its reach to include traditional financial assets. The upcoming Aave V4 upgrade will bring tokenized equities, such as AAPL and TSLA, on-chain. This will allow users to deposit them as collateral or lend them out directly. This integration is expected to help Aave to capture a share of the global securities lending market, which is currently holding approximately $4.6 trillion in securities on loan and generates around $35 billion in annual revenue.
Aave Executive Luigi D’Onorio DeMeo stated in the post on X that, “Prime brokers and retail platforms like Robinhood and Schwab, etc earn sizable revenue by lending out the stocks that individuals/funds hold in their account. They typically keep 50-85% of the borrow fees, passing only a small share back to you.’
“The gtm for Tokenizing equities will be providing utility with Aave V4. It creates a better model: supply tokenized stocks onchain, earn the full borrow rates directly with real-time transparency, dynamic pricing, no rehypothecation and no middlemen taking the lion’s share,” he said.
Aave Might Face Correction As It Enters Overbought Zone
Aave is currently trading in the volatile range of around $82 to $97, which is showing strong short-term recovery momentum after the recent crash in the overall cryptocurrency market.
According to the price chart on TradingView, the short-term moving average for the Aave price is looking bullish as a 5-day MA sitting around $92.51, the 10-day MA near $89.09, and the 20-day MA at $86.24. The current price is trading above such levels. However, long-term moving averages suggest a bearish scenario. The 50-day MA sits around $82.75, while the 100-day and 200-day MAs are much lower than that level. This is also confirmed by the drop from the earlier 2026 highs.
The current price movement is showing that Aave is in a short-term upswing within a larger corrective phase. The 14-day RSI is revolving at around 70.10. It means that the cryptocurrency is currently in the overbought territory.
At the current price levels, there are major support levels between $79 to $82, which are recent lows and the 50-day MA, with strong support around $71 to $74. There is a major resistance level at around $97, which is also a recent high. If the cryptocurrency manages to soar above this, then it could face other resistances at around $101 and $103.
US Strikes on Iran Revive Fear in Crypto Sector
On June 26, the U.S. reportedly launched a fresh strike against Iran in retaliation for drone attacks on cargo ships in the Strait of Hormuz. In the official post on Truth Social, U.S. President Donald Trump called Iran’s attack “a foolish violation of our Ceasefire Agreement.”
While the crypto sector is already struggling to recover from the catastrophic drop in the last few months, the peace deal between the U.S. and Iran could be a major catalyst for the overall market. The latest attacks have once again sparked fear in the cryptocurrency community. Many people believe that it could create a problem in the Strait of Hormuz.
