Aave V4 is recording increased borrowing activity on Base as users use tokenized stocks as collateral to access USDC. According to Token Terminal, 144 wallets were borrowing against Coinbase-issued tokenized equities, up from eight on the September 25 launch day. These wallets have deposited $9 million in tokenized stocks, including Apple, Nvidia, and Tesla, and borrowed $3.8 million in USDC. Meanwhile, analyst Don identified a potential bullish pattern on the AAVE price chart, with a breakout possibly opening the way toward higher price levels.
Aave V4 Borrowing Activity Increases on Base
According to Token Terminal, the number of wallets borrowing USDC against tokenized stock collateral on Aave V4 on Base increased from eight at launch to 144. The feature launched on September 25, marking a new use case for tokenized equities within decentralized lending.
The wallets have collectively deposited $9 million worth of Coinbase-issued tokenized stocks and borrowed $3.8 million in USDC. Their collateral includes tokenized equities linked to Apple, Nvidia, and Tesla.
Source: Token Terminal’s X Post
This activity demonstrates how tokenized traditional assets can serve purposes beyond investment exposure. Eligible tokenized stocks can support borrowing through an onchain lending market, allowing users to access stablecoin liquidity without necessarily selling their positions.
However, the figures relate specifically to this Aave V4 deployment on Base. Continued growth in borrowing wallets and collateral deposits will help determine whether the initial increase develops into sustained usage.
Also Read: Aave Expands DeFi TVL Growth as AAVE Price Setup Draws Attention
Tokenized Equities Expand Aave’s Lending Opportunities
The uptick in lending shows that there is a rising link between financial assets and decentralized finance. The ability to use tokenized stocks as collateral on Aave V4 provides users with an alternative way of accessing liquidity in USDC.
The reported amount of collateral being worth $9 million and the borrowed amount being worth $3.8 million shows the beginning of adoption. Increased amounts would show greater demand for tokenized equity lending.
AAVE might benefit from more utilization of the protocol, but increased utilization in one of the protocols does not necessarily mean that there will be an increase in demand for the token itself. In addition to protocol utilization and lending, it is worth considering the protocol’s revenues and liquidity as well.
AAVE Price Setup Highlights $183.60 Target
Crypto analyst Don indicated that the AAVE price made a breakout out of its 229 days trading range but went into correction from $188 to $156. As per the analyst, the retracement has created a small falling wedge pattern on the daily chart.
A falling wedge is a pattern that suggests a potential continuation of the bullish trend once it breaks out of the pattern through its descending resistance line. Don identified confirmation as a key signal.
Source: Don’s X Post
In case of a breakout taking place, the analyst’s calculated targets would be $183.60 and $303.48, where the former would help the AAVE price move closer to the previous local high of around $188, whereas the latter will be considered a larger recovery for the token.
The $128 level is another support level pointed out by Don, being the upper end of the previous price range, which will become invalid in case of a breakout.
These projections remain conditional on price action and do not guarantee future gains.
What Comes Next for AAVE?
The next technical move for the AAVE price will depend on the ability of the buyers to force the price past the resistance of the falling wedge. A successful daily closing could put $183.60 into focus, but even then, an additional move will be needed to take it up to $303.48.
A failure to break through the resistance will result in consolidation, while moving back to the old range will reduce the positive sentiment. The traders will also be focusing on $128 support level noted by Don.
On the other hand, increased tokenization of stock lending on Aave V4 could prove to be another indication of the demand for their lending services. Borrowing patterns, deposits, and the price structure per day should be considered as significant indicators.
An eventual breakout and ongoing adoption of the ecosystem could support the bullish scenario, albeit both events being uncertain.
Also Read: Aave V4 Attracts $4.9M in Tokenized Stocks as AAVE Price Outlook Improves
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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