Aave Rallies 16% as Tokenized Stocks Enter DeFi

Aave extended a sharp recovery on renewed demand tied to tokenized equities entering decentralized finance. The token rose more than 16% in the latest move, pushing AAVE toward $166 after trading near its September lows.

The catalyst is a broader use case for Aave’s lending market: Coinbase tokenized stocks can now be used as collateral, expanding the range of assets that can flow into DeFi credit markets. Traders also are revisiting AAVE tokenomics, which has added to the bid as the protocol’s role in tokenized asset lending gains visibility.

The price move comes as crypto markets continue to benefit from a risk-on backdrop. The Fear and Greed Index stands at 73, indicating elevated appetite for speculative assets and supporting momentum trades across major digital-asset names.

From a market structure perspective, the rally reflects improving expectations for real-world asset integration rather than a purely technical breakout. If tokenized equities gain broader adoption as collateral, Aave could see deeper liquidity, higher borrowing demand and stronger protocol relevance among DeFi lenders.

Still, the path to $200 is not automatic. AAVE must hold recent gains and attract sustained volume above the current range. Without follow-through from new collateral inflows and broader DeFi participation, the move risks fading into a short-term repricing event.