The post Aave’s DeFi success cushions AAVE prices amid market crash – More gains likely? appeared on BitcoinEthereumNews.com.

The crypto market is seeing mild recovery after prices across the board jumped higher on Tuesday. Aave has been an outlier this week, largely trading against the general market downtrend. Crypto assets are reeling from the sector-wide bloodbath on 5th August, with Bitcoin [BTC] price rising above $56K during Tuesday’s trading session. Meanwhile, Aave [AAVE] was trading at $101 at press time, slightly below an intra-day high of $106.92 per CoinMarketCap data. Source: TradingView Crypto-related equities and global stock markets are also seeing stability after plunging this week. The restored sentiment has been partly attributed to the renewed hopes for a Fed rate cuts after Monday’s global market slide which rekindled concerns about the US economy facing recession pressure. Aave protocol’s DeFi operational success In a 5th August post on the X platform, Aave Labs cofounder Stani Kulechov noted that the protocol held out against stress across active markets on various Layer 1 and Layer 2 blockchains. The lending protocol handled decentralized liquidations effectively, earning the Aave Treasury $6 million in revenue overnight. Circle cofounder Jeremy Allaire affirmed Stani’s take in a repost, “DeFi always on, never sleeps, open networks, open-source protocols, auditable in real time.” The three-day sell-off between 3rd August and 5th August saw $350 million worth of DeFi positions liquidated, according to data from Parsec Finance. DeFi risk intelligence platform Block Analitica shows liquidations on Aave peaked at $234 million on 5th August. Source: Block Analitica The Aave protocol is currently deployed across a dozen chains including Ethereum mainnet, Optimism, Arbitrum, Polygon, Base, Gnosis Chain and BNB Chain. DeFiLlama data shows Aave had $10.8 billion in total value locked (TVL) at press time. Source: DeFiLlama These fundamentals helped AAVE, the governance token, recover swiftly and fare better than many other tokens on Tuesday. Milestones in July On…

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Filed under: News - @ August 7, 2024 6:28 pm