AAVE's 64% Fast Decline: DeFi Protocol Demonstrated Its Resilience

Aave platform's native token, AAVE, experienced a significant decline of %64 during the major drop in the cryptocurrency market last Friday. Following the decline, AAVE recovered its losses and showcased a %140 rebound.

The Aave protocol proved its resilience by executing a record-high 180 million dollars worth of liquidations without human intervention. This highlighted the robustness of the protocol’s technology and infrastructure quality.

AAVE was initially trading at around 270 dollars on Friday. It then dropped %64 during the day, falling to 100 dollars and reaching its lowest value in 14 months. However, it quickly rebounded to levels around 240 dollars. Even so, despite this recovery, there was still a %10 loss over the past 24 hours.

The founder of Aave, Stani Kulechov, described this situation as the largest stress test the protocol has ever undergone. Aave offers investors the ability to borrow or lend digital assets by eliminating traditional intermediaries with its innovative mechanisms. Thanks to the technologies offered by Aave, users can complete rapid lending transactions.

Kulechov noted that the protocol operated flawlessly, automatically liquidating 180 million dollars of collateral within just one hour. “Once again, Aave proved its resilience,” he stated.

The price movements for AAVE were remarkable; the token experienced a %64 loss, dropping from 278.27 dollars to 100.18 dollars during the onset of the downturn. Its recovery from the day’s low to 240.09 dollars resulted in a %140 turnaround. Following the volatility, AAVE entered a consolidation phase between 237.71 and 242.80 dollars.

In technical indicators, volatility of %64 was recorded at the level of 179.12 dollars. Trading volume increased to 570,838 units, significantly above the average of 175,000. It was noted that short-term resistance is at 242.80 dollars, and it is expected that this level will be surpassed during the consolidation phase.