The combination of rising TVL and strong user stickiness bolsters Aave’s investment value in several ways. A high TVL reflects confidence in Aave’s infrastructure, attracting institutional and retail investors alike, which can drive up the AAVE token price (e.g., a 9% surge to $106.4 in August 2024). Meanwhile, user stickiness ensures sustained usage, reducing volatility in TVL and token demand during market downturns. Aave’s revenue generation—over $351 million in the past year—partially directed to the treasury, supports growth initiatives and token buybacks, potentially increasing scarcity and value. However, challenges like significant liquidations ($285 million in August 2024) and competition from other protocols could temper this upside, though Aave’s robust risk management (e.g., over-collateralization, reserve funds) mitigates such risks.