AAVE, the native token of the leading DeFi lending protocol Aave, surged to a near three-month high of approximately $300 on June 10, with a daily increase exceeding 15% and a 24-hour trading volume skyrocketing nearly 200% to $637 million. Market analysts attribute this rally to sustained investments and strategic partnerships by World Liberty Financial (WLFI), a DeFi project backed by the Trump family, which has significantly bolstered AAVE’s market momentum.

WLFI’s Sustained AAVE Accumulation Drives Market Confidence

Since late 2024, WLFI has aggressively accumulated AAVE tokens, injecting substantial capital into the asset. According to blockchain analytics platform Lookonchain, WLFI invested approximately $45 million in various cryptocurrencies in December 2024, including $1.25 million in AAVE (4,043 tokens at an average price of $308.4).

On December 16, WLFI acquired an additional 685 AAVE tokens at $360 each, totaling $246,700, coinciding with AAVE’s price hitting a three-year high of $383.20, up 14.1% in 24 hours.

Just a day earlier, Arkham Intelligence reported WLFI purchasing 251.826 AAVE tokens worth $91,000, bringing its total holdings to 6,137 AAVE, valued at $2.2 million.

This consistent buying spree, coupled with the Trump family’s high-profile endorsement, has triggered a “herd effect,” drawing retail and institutional investors to AAVE. “WLFI’s transparent accumulation of AAVE signals strong confidence in the protocol’s future, amplifying market sentiment,” noted a DeFi analyst cited in.

Strategic Integration with Aave Protocol Amplifies Demand

Beyond token purchases, WLFI has deepened its integration with the Aave ecosystem, further driving AAVE’s price and trading volume. In October 2024, WLFI proposed deploying a customized lending market based on Aave V3, enabling users to deposit assets like USDC, USDT, ETH, and wBTC. Under the proposal, Aave DAO would receive 20% of the new market’s protocol revenue and 7% of WLFI’s token supply.

By December 13, 2024, WLFI’s community approved deploying an Aave V3 instance on Ethereum’s mainnet, enhancing Aave’s utility and liquidity.

In May 2025, WLFI executed a significant transaction on Aave, depositing 50 WBTC to borrow $4 million in USDC, which was used to acquire 1,590 WETH at $2,515 each. This wallet held assets worth $15.11 million, underscoring WLFI’s active engagement with Aave’s lending platform.

Additionally, WLFI’s launch of the USD1 stablecoin in April 2025, integrated into Aave V3 markets with Chainlink’s CCIP for cross-chain functionality, further boosted Aave’s transaction volume.

Broader Market Dynamics and Aave’s Ecosystem Strength

AAVE’s rally is also supported by broader market trends and Aave’s robust ecosystem. In December 2024, Aave’s TVL reached $35.6 billion, tying with Lido as the top DeFi protocol. Aave’s collaboration with Chainlink on the Smart Value Recovery (SVR) service, launched on December 24, 2024, is projected to generate tens of millions in annual revenue by optimizing liquidations.

Despite WLFI’s portfolio facing a $192 million loss due to ETH price declines in March 2025, its continued focus on Aave lending pools signals long-term optimism. The broader crypto market’s recovery, potentially fueled by pro-crypto policies under the Trump administration, such as the GENIUS Act for stablecoin regulation, has also contributed to AAVE’s momentum.

Looking ahead, Aave’s anticipated V4 upgrade and WLFI’s ongoing USD1 stablecoin promotion could further solidify AAVE’s position in DeFi. However, investors are cautioned that cryptocurrency markets remain highly volatile, and due diligence is advised.