AAVE has risen more than 20% this week and is nearing $200, with part of the advance attributed to capital rotating from Bitcoin. Technical indicators show overbought conditions that could encourage profit-taking. The rally builds on Aave’s expansion of collateralized lending beyond crypto assets, including loans secured by tokenized U.S. stocks on Base. Aave V4 surpassed $1 billion in deposits in September, while lending volume reached about $310 million. The protocol has also expanded into institutional stablecoin and tokenized-stock markets and deployed on Circle’s ARC and Base. Founder Stani has outlined a potential progression from Crypto to Securities and Abundance Assets, with longer-term collateral plans including GPUs and robots. Market participants also expect Aave tokenomics 3.0 could introduce an AAVE token burn mechanism.