- AAVE held steady during the crypto market sell-off and secured $21 billion in value across various Layer 1 and Layer 2 chains.
- AAVE Treasury earned $6 million in revenue from liquidations and the marketwide bloodbath.
- The DeFi token is primed for 15% gains, daily chart shows W formation and potential bullish breakout in AAVE.
- AAVE trades just below $100 on Tuesday.
AAVE generated over $6 million in revenue in Monday’s crypto market sell-off. The decentralized protocol held steady even as the price of cryptocurrencies in the top 30 plummeted.
Stani Kulechov, founder of AAVE, notes that the project secured over $21 billion in value during the carnage in the crypto markets on Monday.
AAVE trades above $99 at the time of writing on Tuesday and secures $10.905 billion, according to DeFi Llama data.
AAVE generates $6 million in revenue
On Monday, Stani Kulechov commented on AAVE’s performance in the recent crypto market correction that served as a stress test for the DeFi protocol. The project withstood the stress across 14 active markets in Layer 1 and Layer 2 chains while securing over $21 billion in value.
The AAVE Treasury earned $6 million in revenue overnight, facilitating decentralized liquidations.
Aave Protocol withstood market stress across 14 active markets on various L1s and L2s, securing $21B worth of value.
— Stani (@StaniKulechov) August 5, 2024
Aave Treasury was rewarded with $6M in revenue overnight from decentralized liquidations for keeping the markets safe.
This is why building DeFi is FTW.
Recent data shows that the project has found higher utility and relevance among traders. Token Terminal data shows that AAVE has generated the most interest among traders. The chart below compares the monthly governance token trading volume for projects in the lending market sector.
Token trading volume in the lending sector
AAVE could extend gains by 15%
The AAVE/USDT daily chart shows a W formation. AAVE trades at $99.41 at the time of writing, and the DeFi token is likely to extend gains and rally toward $114.74, a key resistance level. This would mark 154% gains for AAVE.
The token faces resistance at the upper boundary of the Fair Value Gap (FVG) at $103. The Relative Strength Index (RSI) indicator is back at 50, the neutral level, meaning AAVE lacks any directional momentum.
AAVE/USDT daily chart
On the other hand, AAVE could find support at the imbalance zone between $86.17 and $88.20 in the event of a correction in the DeFi token price.
Failure to see a daily close above $95 could invalidate the bullish thesis for AAVE.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP Price Prediction: Bearish technicals, on-chain indicators signal 68% potential crash
XRP faces increasing bearish sentiment from macro, micro and fundamental factors in April. Weak on-chain indicators ranging from network growth, total supply and active addresses reinforce an impending crash.
Bitcoin Price Forecast: Tariff volatility sweeps over $200 billion from crypto markets
Bitcoin price hovers around $83,000 on Thursday after it failed to close above the $85,000 resistance level the previous day. Volatility fueled by Trump’s tariffs swept $200 billion from total market capitalization, liquidating over $178 million in BTC.
SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX
Solana (SOL) gains nearly 2% in the last 24 hours and trades at 118.28 at the time of writing on Thursday. A Decentralized Exchange (DEX) and a meme coin launchpad built on the Solana blockchain have waged a war for users and compete for the trade volume on the chain.
Shibarium, built for the Shiba Inu blockchain, reaches 1 billion in transactions in 18 months after its launch
Shibarium, a Layer-2 blockchain for the Shiba Inu ecosystem, reaches 1 billion transactions 18 months after its launch. This milestone reflects growing adoption and Shibarium’s robust performance.
Bitcoin: BTC remains calm before a storm
Bitcoin's price has been consolidating between $85,000 and $88,000 this week. A K33 report explains how the markets are relatively calm and shaping up for volatility as traders absorb the tariff announcements. PlanB’s S2F model shows that Bitcoin looks extremely undervalued compared to Gold and the housing market.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.