AAVE price forecast after DeFi TVL decline
AAVE price forecast after DeFi TVL declineAAVE price forecast after DeFi TVL declineAaveAave

After the latest cryptocurrency selloff, the AAVE price fell more than 6.8%. The token fell to $380, which was about 16% below last week’s high. That brings the total market value of all Aave tokens to more than $4.9 billion.

DeFi tokens join the cryptocurrency selloff

Aave is the largest decentralized financial platform (DeFi ) in the world, with a total locked token value ( TVL ) of more than $15 billion. It is closely followed by Maker, InstaDapp, and Curve Finance.

The concept of Aave is relatively simple. It is a platform where people can invest in ERC tokens like Dai, USD Coin, Ether and BUSD. Aave also allows borrowers to borrow from this pool of funds.

Aave has grown from a small startup to one of the leading financial platforms in the world. The total value of locked tokens is more than $15 billion, while the token value is almost $5 billion.

The AAVE price has seen a spectacular rebound after falling to a multi-month low of $179 in June this year. It has risen more than 120% from its low.

This growth has caused the overall value of locked tokens to skyrocket. It has also accompanied the overall upswing in cryptocurrencies. In recent weeks, most altcoins have all jumped, increasing their total value to more than $2.3 trillion.

The price of the coin has dropped after some troubling on-chain metrics. A quick look at Glassnode shows that the total number of active addresses is trending downward. It has even lagged behind the overall performance of Aave’s token price, as shown below. Another metric shows that the total number of new addresses has declined significantly.

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Aave Glassnode 07.09.21Aave Glassnode 07.09.21

Today’s decline in Aave’s price is mainly due to the general sell-off in other cryptocurrencies. A closer look at today’s cryptocurrency performance shows that most coins, including Bitcoin and Cardano, have ended their uptrendszen have been reduced. In addition, the TVL in DeFi has fallen from more than $99 billion to $95 billion.

AAVE Price Forecast

Aave Preisprognose 07.09.21Aave Preisprognose 07.09.21

The daily chart shows that the Aave price has moved sideways in recent days. It has found significant resistance at $456 even as volume remains steady. At the same time, it is along the 25-day and 50-day moving average (EMA) lines.

Of note, Aave has also formed an ascending channel and is currently slightly above the bottom. Therefore, there is a likelihood that the coin will rise again soon. Should this be the case, key resistance will be found at $450.