As one of the top 10 DeFi tokens, AAVE has seen a number of movements when it comes to quotation and investor behavior. For the past couple of days, however, the entire cryptocurrency market has been in a confused state, with prices rising and falling over a span of hours.
Due to this, investors were confused due to unpredictable losses. Fortunately for AAVE investors, it looks like the losses could end.
AAVE takes losses
The Total Locked Value (TVL) in AAVE is currently $ 12,7 billion. However, just 5 days ago it was $ 15 billion. This drop in TVL mainly stems from the drop in price which caused AAVE to drop by nearly 30%.
Since the price collapse, investors have suffered steadily as over 10,86 million AAVEs have suffered losses. The loss-making coins amounted to nearly $ 3,281 billion. These losses further led the value of the network to drop to a 2-month low.
However, it looked like the loss trend would finally come to an end. Furthermore, this is also supported by investors. Previous prominent selling behavior is likely turning into buying behavior. This was observed in the pattern change of outflows, as they hit a monthly low for AAVE.
What is the impact of this change?
In many ways, this could prove to be for the betterment of the property and its holders. Investors were cashing in, first during the September 7th decline and then again during the subsequent 33% rise. But now it seems they are doing the opposite. This decline has seen more accumulation and HODLing than sales.
Long-term holders also sat firmly this time around. Unlike before, when the days of the destroyed coins increased with a drop in prices, this time the figures remained low.
Plus, now that profits are returning, investors have also become more active. Daily Active Addresses just hit a 4-month high today.
In addition, the growth of the network is at most 4 months, which shows that AAVE is indeed gaining ground. More support for this comes from the fact that the correlation it shares with Bitcoin - being at 0,86 - could help AAVE make profits.
And what do you think of it? Have you already invested in AAVE or are you ready to do so? Let us know in the comments section below.
