AAVE topped DeFi growth in 2020 with a whopping 6,372% YoY, here is what to expect in 2021

  • Aave has emerged as the top-performing asset among all DeFi projects in the cryptocurrency industry.
  • AAVE/USD is struggling to find support above $130 following a rejection at $140.
  • The IOMAP model reveals that AAVE has a smooth ride for gains above $140, likely to invalidate the bearish outlook.

The last few months of 2020 were extremely yielding. Bitcoin almost hit a record high at $42,000 while the rest of the cryptocurrencies grew significantly. Aave soared by a colossal 6,372%, topping decentralized finance digital assets (DeFi) year-over-year.

Aave outperforms other DeFi projects

According to Messari, a renowned cryptocurrency analysis platform, Aave almost tripled Yearn.Finance growth in 2020, which came second after soaring 2,729%. THORChain came third following a 1,700% spike ahead of UMA with 906%. Other great performers in the DeFi sector include Loopring at 690%, Gnosis at 575% and the token with the largest market cap in the ecosystem, Synthetix at 499%.

DeFi top performers in 2020

DeFi top performers in 2020

In the meantime, Aave is trading at $137 after hitting a barrier at $140. The goal among the bulls is to establish higher support, preferably above $130. If push comes to shove and losses stretch out significantly, AAVE price would test the 50 Simple Moving Average for support around $120.

AAVE/USD 4-hour chart

AAVE/USD 4-hour chart

The TD Sequential indicator has just presented a sell signal on the 4-hour chart, adding credence to the pessimistic outlook. The bearish formation developed as a green-nine candlestick anticipating a one to four daily candlesticks correction.

A red two candlestick trading below a preceding red-one candle could serve as confirmation that AAVE is poised to drop further.

AAVE/USD 4-hour chart

AAVE/USD 4-hour chart

On the other hand, IntoTheBlock’s IOMAP reveals the lack of a substantial resistance ahead of Aave. This shows that the DeFi token could rally to new yearly highs beyond $140 if the tailwind behind it surges.



On the downside, Aave is sitting on areas with immense support. The most robust anchor zone runs from $117 to $121. Here, 1,600 addresses are currently profiting from the approximately 592,000 AAVE previously bought. It will be a daunting task for the bears to slice through this support area, which may invalidate the pessimistic outlook.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano Price Forecast: ADA targets 900% bull rally, but it must clear $0.33 first

Cardano had a significant rally towards $0.355 at the beginning of 2021. After a notable dip to $0.228, bulls bought it and managed to push Cardano price to $0.33 again before a small rejection.

More Cardano News

Ethereum price aims to flush out doubters before the ultimate breakout to $2,000

Ethereum bulls bought the dip on January 11, pushing the digital asset from a low of $915 towards $1,256. The smart-contracts giant has been outperforming Bitcoin in the past 24 hours despite the negativity seen on social media.

More Ethereum News

XLM Price Prediction: Stellar consolidates ahead of a 30% move

XLM price trades at $0.291 at the time of writing after a healthy consolidation after hitting a 2021-top at $0.411. There is a high chance that XLM is about to see a massive breakout or breakdown within the next 24 hours.

More XLM News

Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. The panic sell-off was stopped on its tracks at the 26-EMA on the daily chart as bulls quickly bought the dip and created a V-Shape recovery pushing BTC towards $40,100 again. 

More Bitcoin News


Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. 

Read the weekly forecast