AAVE Crypto Price Continues Freefall

AAVE crypto price has continued its freefall this week, hitting its lowest level since June 28. The token has entered a local bear market after falling 23% from its July high of $337.

Summary

• Aave crypto has moved into a local bear market after falling by 23% from the July high.
• The total value locked in the ecosystem surged to a record high this week.
• Data shows that the fees and revenue in the network is soaring.

AAVE Crypto Price Crashed Despite Booming Ecosystem

Aave (AAVE), the biggest player in the decentralized finance industry, is firing on all cylinders as its assets and fees jump.

DeFi Llama data shows that the total value locked in the ecosystem jumped to a record high of $35 billion this week. This represents a strong surge for a platform that started the year with $21 billion in assets.

One of the main catalysts for this surge is Ethena (ENA), whose assets have jumped to nearly $5 billion recently. Dune Analytics data shows that they have increased by over $1 billion in the past two days.

This growth has led to a significant increase in its fees. Data shows that AAVE has collected over $783 million in fees in the last 12 months, with annualized earnings jumping to $47 million and revenue soaring to over $110 million.

Aave Total Value Locked and Fees | Source: DeFi Llama

Data from TokenTerminal indicates that Aave’s net deposits rose by 21% in July, with active loans increasing by 25% to $20.5 billion. Monthly fees and revenue grew by 49% and 85%, respectively.

This rapid growth occurs as the DeFi lending space becomes increasingly competitive, with platforms like Morpho, Compound Finance, and Maple Finance gaining ground.

AAVE Price Technical Analysis

The daily chart indicates that AAVE has been in a steep decline after peaking at $337.25 in July, coinciding with a broader sell-off across crypto markets.

AAVE has fallen below both the 50-day and 100-day Exponential Moving Averages and is now approaching the psychological support level of $250. The Relative Strength Index is nearing oversold territory.

The token is currently resting on an ascending trendline connecting the lowest swing points since April 7. A potential rebound could send it toward resistance at the Murrey Math Lines level of $312. However, if it breaks below the trendline, this bullish scenario will be invalidated.

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