AAVE began 2024 slowly but has gained significant momentum, rising over 118% in the year. The recent launch of the v3.2 upgrade has raised questions about its potential to reach new highs, possibly surpassing the $200 level. While the price has been positive since October, recent performance is contingent on broader market conditions and user adoption of new features.

The v3.2 upgrade introduces enhancements that improve capital efficiency and user experience, including Liquid eMode for better borrowing and collateral management. This could attract more users and increase total value locked (TVL). However, AAVE's active loans and TVL remain around 60% lower than their all-time highs.

AAVE commands a significant 64% share of the lending market, outperforming competitors. The protocol's efficiency improvements and community-driven governance are expected to enhance its competitiveness in the DeFi space, potentially driving demand for AAVE tokens as the crypto market rebounds.