Aave, a prominent DeFi platform, has encountered a downward trend over the past three months, witnessing a significant 25% decline in its value.
The bearish sentiment persists, with additional losses of 12% and 3% observed over the past 7 days and 24 hours, respectively.
Insights from on-chain analytics provided by Lookonchain highlight the emergence of a whale selling Aave tokens at a loss. The whale recently deposited 264,000 AAVE tokens, equivalent to $22.56 million, to Binance at a price of $85.48 over the past two days.
A whale is selling $AAVE at a loss!
The whale has deposited 264K $AAVE($22.56M) to #Binance at $85.48 in the past 2 days.
He withdrew 364K $AAVE($35.97M) from #Binance between Nov 6 and Nov 9.
The whale has 100K $AAVE($8.45M) left, with a total loss of nearly $5M. pic.twitter.com/lR1bZki3lF
— Lookonchain (@lookonchain) February 1, 2024
Notably, the whale had previously withdrawn 364,000 AAVE tokens, valued at $35.97 million, from Binance between November 6 and November 9. With only 100,000 AAVE tokens, amounting to $8.45 million, remaining, the whale has incurred a total loss of nearly $5 million.
Miner Extractable Value (MEV) Of Aave At $4,000,000+
The DeFi ecosystem is grappling with significant losses attributed to Miner Extractable Value (MEV). Lending protocols are experiencing substantial financial leakage monthly due to MEV exploitation.
To address this issue, the OEV Network has been introduced, leveraging zk-Rollup technology to capture and redistribute lost value back to the protocol. As of January 2024, the total OEV of Aave V2 & V3 across all chains amounted to reportedly $4,000,000+.
Lending protocols are leaking millions of dollars every month due to MEV.
OEV Network is a zk-Rollup built to capture that value and return it to the protocol.
In January, @aave would have been able to recapture and keep up to 90% of this value. pic.twitter.com/QSi8p57WWh
— API3 (@API3DAO) February 1, 2024
As Aave navigates through these challenges, the cryptocurrency community closely monitors developments in whale behavior and MEV mitigation strategies.
The impact of these factors on Aave’s long-term stability and market performance remains a topic of interest among investors and stakeholders in the decentralized finance space.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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