The AAVE lending and borrowing protocol made an overnight revenue of around $6 million amid the heavy crypto liquidations led by Ethereum.
Amid the ongoing crypto sell-off in the past 24 hours, Aave (AAVE), a decentralized money market protocol that enables seamless lending and borrowing across various networks, emerged as a winner. According to Stani Kulechov, the founder of Aave protocol, the platform made an overnight revenue of about $6 million.
Despite the heavy crypto liquidations, which surpassed $1 billion in the past 24 hours, the Aave protocol largely withstood the market stress
Furthermore, on-chain data shows at least 25 Ether addresses were liquidated more than 63.7k ETH units, worth over $150 million.
“Aave Protocol withstood market stress across 14 active markets on various L1s and L2s, securing $21B worth of value. Aave Treasury was rewarded with $6M in revenue overnight from decentralized liquidations for keeping the markets safe,” Kulechov noted.
Aave Price Takes a Hit
Despite the Aave protocol demonstrating its market resilience, its native coin AAVE was not spared in the recent crypto capitulation. According to the latest crypto data, AAVE price dropped nearly 28 percent in the last 24 hours to trade at about $79.68 on Monday during the early New York session.
Consequently, the AAVE token saw its market cap shrink to about $1.2 billion and a daily average traded volume of around $450 million.
From a technical standpoint, the AAVE price action is under the control of the bears, which could lead to further downward movements in the coming weeks.
Moreover, August and September have been identified as bearish months for the crypto industry before a rejuvenated rebound in the fourth quarter. Additionally, AAVE price against the US dollar has slipped below the 200 weekly Moving Average (MA), with the Relative Strength Index (RSI) signaling further downward pressure.
Network Development
As Coinspeaker previously stated, the AAVE network has continued to develop its underlying infrastructure to ensure enhanced security, operation efficiency, and usability. Remarkably, the recently launched Lido V3 market on the AAVE protocol has achieved more than $200 million in market size.
The Lido V3 market on @aave has been live for 48 hours and just surpassed $200m in market size 👻
Here's what you need to know 👇 pic.twitter.com/aNSGxsq2fy
— Lido (@LidoFinance) July 31, 2024
According to the latest market data, the AAVE protocol has a total value locked (TVL) of about $9.8 billion and enabled more than $6.5 billion in borrowed assets.
Bigger Picture
The notable development of the Web3 ecosystem has significantly increased the confidence in the digital asset industry in the past years. According to Ethereum co-founder Vitalik Buterin, the Web3 ecosystem has significantly benefited from the interoperability of both layer one and layer two networks.
More institutional investors are expected to adopt the Web3 and digital assets industry to hedge against the struggling traditional financial markets. Furthermore, the crypto issue is expected to play an important role in the upcoming US general election.
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