- Grayscale’s ETF proposal puts AAVE firmly on institutional radar.
- Rising Open Interest and user activity suggest real market participation.
- Clearing $148–$180 resistance could confirm expansion into a stronger trend.
Institutional interest in decentralized finance may be entering a new phase after Grayscale Investments moved to convert its Aave Trust into a spot ETF. Filed with the U.S. Securities and Exchange Commission in early February 2026, the proposal aims to list the product on NYSE Arca while directly tracking AAVE. With Coinbase named as custodian and a 2.5% sponsor fee paid in AAVE, the filing highlights how traditional finance is increasingly evaluating DeFi exposure.
While approval remains uncertain, the application alone has reshaped sentiment around the protocol. For a token with roughly a $1.8 billion market cap, the move suggests institutional players are monitoring DeFi lending more closely than before.
Market Structure Strengthens as Derivatives Return
AAVE’s market structure improved noticeably in mid-February as broader crypto risk appetite recovered. When Bitcoin surged toward $70,000, capital rotated back into utility-driven altcoins, lifting AAVE alongside a sharp derivatives rebound.
Open Interest nearly doubled, rising from about $153 million to roughly $237 million, signaling renewed trader conviction. The token’s price jumped more than 20% from near $106 to stabilize around $128. On the daily chart, AAVE also reclaimed its long-term ascending support after briefly losing it earlier in the month — a move that invalidated the prior breakdown and restored bullish structure.
Momentum indicators supported the shift. A bullish MACD crossover confirmed strengthening buying pressure, though resistance between $148 and $180 remains a key hurdle. A decisive break above that range could open the path toward significantly higher price zones.
Network Activity Confirms Broader Participation
On-chain data also paints a constructive picture. Weekly active addresses have returned to levels last seen in late 2024 and early 2025, signaling a meaningful rebound in user participation. Importantly, the rise in engagement coincided with derivatives growth, suggesting activity is not driven purely by leverage.
Also Read: Aave and Ethereum Crash — But Charts Hint at Imminent Rebound
This combination of increasing usage, improving technical structure, and institutional attention provides a stronger foundation than a typical speculative rally. It indicates renewed confidence in the protocol’s role within the DeFi ecosystem.
Grayscale’s ETF filing may not guarantee regulatory approval, but it underscores a shift in how institutions view DeFi assets. If AAVE can sustain strength above key resistance while maintaining user growth, the token could move closer to the level of institutional visibility historically reserved for larger crypto assets. The coming months will likely determine whether this moment marks the start of AAVE’s institutional era — or simply a preview of what lies ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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