The presence of the AAVE protocol and token in the DeFi space has been prominent since its launch. And, with its third iteration, AAVE has cemented itself as a top lending protocol.
Regardless, its native token is yet to outperform its counterparts. At press time, AAVE was the #50 biggest cryptocurrency in the world by market cap.
A rally worth 34.45% is good enough for any asset to restore its investors’ faith. But when the same happened in the case of AAVE, the altcoin triggered investors to double down on their bullishness resulting in high liquidations and sudden selling within 24 hours.
AAVE price action | Source: TradingView – AMBCrypto
At the time of writing, 350k AAVE worth over $23.1 million was cumulatively received by cryptocurrency exchanges’ wallets. However, this is not what determined AAVE’s worst day in history.
It was the desperation of the investors that led to it.
AAVE investors’ selling | Source: Santiment – AMBCrypto
The network-wide supply of AAVE shows that the total assets that moved around in the last 24 hours of 21 June were moved at a loss. the current trading price of $66 was far lower than the price they were bought at.
This resulted in $114 million worth of supply sitting at a loss in aggregate, the highest ever registered figure in the history of AAVE.
AAVE supply at a loss | Source: Santiment – AMBCrypto
Further backing the investors’ desperation was the fact that AAVE’s Long Term Holders (LTHs) and loyalists moved their holdings around.
Additionally, investors who had held on to their AAVE for more than a year out of the fear of additional losses decided to shift it around. Consequently, consuming more than 162.45 million days, the second-highest ever.
AAVE LTH selling | Source: Santiment –
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