The massive crypto market crash on May 9 didn’t space any token, including Aave. The crypto market lost more than 186 billion within a day. While writing this content, the marketplace seemed primed for bearish runs, while panic-selling remained the dominant mode for cryptocurrency investors.
AAVE and Its Painful Run
Besides the spot market, AAVE’s poor performance stretched to the decentralized finance (DeFi) space, as the lending DApp loses new investors. Meanwhile, bears have dominated this year, and the credit goes to 2021’s crypto market price trajectory.
Until October last year, borrowing and deposits on the decentralized app hit $38 million and $1 billion (respectively). Nevertheless, the latter resorted to the downside, currently at $207 million. Meanwhile, borrowing climbed to $53.4 million.
Also, the protocol’s new accounts saw a massive plunge from 87K in January last year to this month’s figure at 1,187. That represents a 98.7% plummet in 16 months, a concerning development for AAVE investors.
Analyzing the May 9 price chart shows AAVE declined by 32.33 in a week to trade around the $107.68 value area. It lost the crucial support barrier at $112.4, hitting the lowest level in 16 months. Nevertheless, the token climbed to change wallets near $114.50 at this publication.
For now, AAVE investors have no other choice but to hodl their tokens until positive price changes emerge. An upside rally can help most investors erase incurred losses.
Meanwhile, fear prevails within the cryptocurrency marketplace. As a result, AAVE noted reduced adoption and deteriorating network growth. Besides that, more than 87.14% of investors enjoying losses make AAVE a no go zone for new investors while existing ones have nothing to smile about for the alt.
Moreover, it’s worth knowing that once a bullish run recovery emerges, AAVE traders would rush to book profits while exiting their position. That means more pain ahead for the alternative token.
AAVE’s declines come as the broad crypto spectrum sees turmoil. While publishing this news, the cumulative crypto market capitalization stood at $1.46 trillion, down 4.14% within the previous day.
Stay tuned for upcoming crypto news.
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