Unique Defi King AAVE now slides downhill unchecked

AAVE is one of the largest lending protocols in the DeFi space. When such a project slows down, it creates concern across the room. Looking at the AAVE movement right now, there seems to be a lot of room for further development.

Did AAVE live up to expectations?

When it comes to a DeFi project, consistent usage is more about adoption rate. The DeFi hype has decreased dramatically in the last month and as a result has had an equally negative impact on several large DeFi projects.

Currently, AAVE is still working fine when applied by Balancer Labs. Yesterday, this leading decentralized application of programmable liquidity added AAVE booster pools to its network to deliver higher returns, better capital efficiency and higher liquidity for investors.

But King Defi has become one of those obscure projects for some time that makes investors rethink their investment.

First, the market is falling, the owners are still tenacious HODL AAVE. Usually this sentiment is short-term as the price will recover after a while.

In the case of AAVE, however, prices have still been down for 4 months and are now close to pre-March levels.

AAVE price promotion | Source: TradingView

In addition, this stagnant movement has a greater impact on the network. The average balance across all addresses has gone down and is now at an all-time low, suggesting that the losses were due not to investor exit but to the lack of any upward movement.

AAVE average credit | Source: Intotheblock

This is also shown by the fact that most of the network has been lost in recent months.

Second, the slowdown since July due to token movements is also affecting investor sentiment.

Speed ​​of AAVE | Source: Santiment

Even whale movements declined this week, despite making up 65% of the supply of 13.4 million AAVE.

Distribution of investors AAVE | Source: Intotheblock

Overall, this is affecting the network’s growth and could force new investors to exit if it doesn’t rise soon.

AAVE network growth | Source: Santiment

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