The AAVE price tumbled by more than 6.8% as a fresh sell-off in cryptocurrencies emerged. The token declined to $380, which was about 16% below the highest point last week. This brings the total market value of all Aave tokens to more than $4.9 billion.
DeFi tokens join the cryptocurrency sell-off
Aave is the biggest Decentralized Finance (DeFi) platform in the world with more than $15 billion in total value locked (TVL). It is followed closely by Maker, InstaDapp, and Curve Finance.
Aave’s concept is relatively simple. It has created a platform that allows people to invest their ERC tokens like Dai, USD Coin, Ether, and BUSD. It also allows borrowers to borrow from these pool of funds.
Aave has grown from a tiny startup into one of the leading financial platforms in the world. It has a total value locked of more than $15 billion while its token is valued at almost $5 billion.
The AAVE price has made a spectacular rebound after it dropped to a multi-month low of $179 in June this year. It has risen by more than 120% from its lowest level.
This growth has accompanied the overall rebound of the total value locked has jumped. It has also accompanied the overall rebound of cryptocurrencies. In the past few weeks, most altcoins have all jumped, pushing their total value to more than $2.3 trillion.
The coin’s price is declining after some worrying on-chain metrics numbers. A quick look at Glassnode shows that the total number of active addresses has been on a downward trend. It has even lagged the overall performance of Aave’s token price as shown below. Another metric shows that the total number of new addresses has declined substantially.
The daily chart shows that the Aave price has been moving sideways in the past few days. It has found substantial resistance at the $456 even as volume holds steady. At the same time, it is along the 25-day and 50-day exponential moving averages (EMA).
Notably, Aave has also formed an ascending channel and is currently slightly above the lower side. Therefore, there is a likelihood that the coin will bounce back soon. If this happens, the key resistance level to watch will be at $450.
