While the wider crypto market is bleeding red, Aave (AAVE) has gone the other way and caught everyone's attention. Its price has climbed nearly 30% over the past 14 days. The asset is up 14.2% in the last 24 hours and 11.7% across the weekly charts. The biggest driver behind this move is a Standard Chartered forecast that the asset could reach the $3,500 mark by the end of 2030. The real question is whether this rally can survive a bearish market.
One Bright Spot in a Falling Market
Aave's run comes in the middle of a market-wide correction. Bitcoin briefly slipped to the $59,000 level before clawing back above $61,000. The crypto pullback mirrors a global trend. This week the stock market, and tech stocks in particular, posted heavy losses.
Standard Chartered's Bold Targets
Much of Aave's strength rests on Standard Chartered's latest outlook. The bank expects the asset to hit $180 by the end of this year. Over the next three years it sees AAVE climbing to $600, $1,200 and $2,200, before eventually reaching the $3,500 target. Standard Chartered has previously said it expects $4 trillion in tokenized assets by the end of 2028, and a slice of that capital is expected to flow into AAVE as well.
The Risks Are Real Too
As bullish as Standard Chartered is on Aave, the current environment could trigger a price correction. Inflation in the US remains high, and the Federal Reserve is expected to raise interest rates later this year. Higher rates could push capital out of the high-risk crypto market, and AAVE could dip under that pressure.
Still Far From Its 2021 Peak
Aave hit an all-time high of $661.69 in May 2021, more than five years ago. Over the last five years the asset has struggled to recapture that 2021 momentum. As tokenized assets go mainstream, AAVE could see some renewed upside.
