The 22-year-old followed Rodgers from South Wales for £15million in the summer and settled straight into a first-team place. Recent performances have dipped slightly but the Reds boss has excused those and believes the Wales international will prove to be a key figure in the club's revival.
And Rodgers believes the imminent comeback of Lucas Leiva, who played an hour for the Under-21s on Friday after three months out with a thigh injury, will bring out the best in Allen.
"I think he's stepped up. Joe has come in and the biggest credit you can give him is the supporters have really taken to him," said the manager. "Normally it takes players time to adjust to Anfield and the size of this club and the transition has been fairly smooth.
"In the last couple of games he's not been at the level he would want to be but there are all sorts of reasons: he's been playing a lot and he's just become a father so he's had many sleepless nights.
"But he will be a revelation for the club. He's been terrific and I am sure that will continue over the next number of years."