According to Woofun AI, BTC successfully broke through the $8.3 million key resistance level, and market bullish sentiment picked up significantly. As long as the asset does not fall below the $82,000-$8.3 support range in volume and holds steady positions over a higher time period, it is difficult to establish a bearish logic.
It is worth noting that most of the altcoins that outperformed the market in this round have real revenue generation capabilities. Tokens such as HYPE, LIT, ENA, and UNI have all recorded sharp increases, and revenue narratives are becoming the core focus of capital chase.
DeFilLama's Revenue dashboard is a core research tool when screening profitable on-chain projects. By ranking by 30-day revenue, investors can quickly locate high-yield agreements. Take Aave, which is ranked 28th in 30-day revenue, as an example. Its agreement board reveals the linkage between TVL, AAVE prices, and revenue metrics. The data shows that all three indicators are currently significantly below their October 2025 highs. Part of the reason for this drop was the RsETH vulnerability incident in April, which led to an apparent leak in Aave TVL.
However, the deeper reason is that the overall market has been in a bear market cycle since last year, and TVL for most decentralized applications has declined, and Aave has not been spared. Data compiled by Woofun AI shows that with recent improvements in the market environment, Aave's TVL, revenue, and token prices have simultaneously opened a recovery channel in the past two to three months. This trend reversal forms the cornerstone of in-depth research.
Before buying income-type tokens, we need to focus on evaluating three dimensions: expected growth in protocol revenue, benefit mechanisms for token holders, and the existence of major catalysts. If BTC continues to rise, Aave is expected to continue to attract new liquidity as it has in the past two months. Since Aave users' deposits include a large amount of BTC encapsulated tokens and ETH, the rise in crypto asset prices will directly drive an increase in TVL and protocol revenue. This counterproductive mechanism makes AAVE strong potential for performance in the upward trend. Regarding token holders' benefits, Aave previously had a buyback mechanism, but it was suspended after the RsETH vulnerability incident.
However, Aave founder Stani confirmed on September 19 that the team is developing a proposal to restart the buyback, and that this arrangement is included in the Aavenomics 3.0 upgrade plan. Although there is currently no clear timeline, the expectation of a tokenomics upgrade itself is an important catalyst, making AAVE more attractive to forward-looking investors.
Additionally, the Aave App is about to be released to the public, and this product-level development may also bring additional attention to the project.
In addition to fundamentals, mental share is just as critical compared to competing products. The crypto market is essentially an attention economy, and the popularity of a project's discussion on X (Twitter) directly affects its valuation. As you can see by searching Aave, a number of non-team official accounts are also actively discussing, showing a high level of community participation. In terms of competition, Morpho has grown significantly faster than Aave in recent months, but the MORPHO token lacks a value capture mechanism, the agreement itself does not generate revenue, and the team has not indicated that this situation will change in the near future. Therefore, between AAVE and MORPHO, the former has more investment value because it has a real revenue stream. In terms of narrative fit, currently the hottest stories on X include AI, perpetual contract DEX, privacy, and revenue narratives. Although not directly related to the first three, Aave, as a profitable on-chain business, fits the revenue narrative perfectly, and is therefore favored by capital under specific market sentiment.
Taken together, AAVE is considered a suitable target to hold because it satisfies conditions such as continuous revenue growth, clear product market matching, active community, and proximity of catalysts. DaanCrypto notes that buying such altcoins with solid fundamentals is an effective strategy to increase exposure when BTC falls sharply.
In terms of industry news, Aerodrome announced plans to launch a new Aero DEX on October 21; the US SEC allows the project to carry out token buybacks in accordance with the law; Chainlink launches CCIP 2.0 interoperability agreement; Aave V4 supports loans using Coinbase (COIN.US) tokenized shares as collateral; and Stacks founder Muneeb became the new CEO of Stacks Labs 24 after the announcement Within an hour, the price of STX rose 30%; Lighter announced that it will soon launch new products such as options and the Lighter EVM; the Hyperliquid team announced that HYPE worth $320 million will be sold through OTC transactions; Kinetiq announced an airdrop that requires payment; Jumper's ICO has already started, and TGE is scheduled to be carried out in the fourth quarter; Moudinho launched a free encryption tool, Stuckfunds, which can scan wallets that have not yet been received Cross-chain bridge withdrawals; Ethena announced the cessation of USdE token incentives, which could mean the last sixth season airdrop is coming; Open Standard launches a stablecoin called OUSD; Near Intents was attacked and lost $3.8 million; Bitwise launches the US's first Near Spot ETF (NRR.US); DEX Arcus, a perpetual contract created by the dYdX team, launched an S1 credit program. Together, these dynamics outline the multi-dimensional evolution path of the current Web3 ecosystem in compliance, technological innovation, and market games.