Liquidation Alert As High-Risk Loans On Aave Reach $1 Billion Details

According to a report by data analytics company IntoTheBlock, the volume of high-risk loans on the prominent Aave Protocol is reaching high levels as general loan volume in the DeFi space records multi-year highs. This development is believed to stem from investors exploring various investment strategies in a bid to maximize profits in a highly anticipated crypto bull run. Related Reading: Aave Joins Binances BNB Chain Ecosystem Heres How Users Benefit Aaves High-Risk Loans 5% Short Of Liquidation Threshold In its weekly newsletter on June 8, IntoTheBlock highlights that DeFi loans are currently estimated at  $11 billion representing the peak value seen in the last two years. As the largest lending protocol, Aave accounts for over 50% of these figures with its users having borrowed about $6 billion.  Notably, $1 billion of this debt is categorized as high-risk loans which are placed against volatile collateral. Currently, these loans present substantial risk, with the values of their collateral asset within 5% of their set liquidation threshold. For context, the margin call level or liquidation threshold is a predetermined point at which an asset’s value falls to a level where the lender or broker requires the borrower to add more collateral to maintain the loan or position. Failure to meet this requirement may result in the automatic liquidation of such collateral.   When collateral assets hover around this critical threshold as with the high-risk loans on Aave, any minor dip may lead to widespread liquidations. This normally results in the loss of such assets for the borrower. However, in certain conditions where a rapid price decline occurs, the borrower may incur additional losses which may be transferred to their account balance on the lending platform.  Furthermore, liquidations from these high-risk loans may exacerbate market volatility, which may result in more price loss, leading to more liquidations in a downward spiral. In addition, many assets getting liquidated at once can create liquidity crunches which can prevent the Aave protocol from operating smoothly. Related Reading: Curve Founder Michael Egorov Clears Aave Loan, Reduces Total Debt To $42.7 Million AAVE Price Overview Meanwhile, AAVE has declined by 5.30% in the last day after facing serious resistance at the $98.20 price zone. The DeFi token is currently valued at $92.30 after an overall negative performance in the past week resulting in an 11.53% price loss. However, according to price prediction site Coincodex, the general sentiment around AAVE remains positive. The team at Coincodex backs AAVE to make a remarkable comeback hitting a price point of $303.87 in the next one month. Featured image from LinkedIn, chart from Tradingview

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Whale Deposits $21 Million In DeFi Tokens To Binance, Was It Justin Sun?

In the early hours of Monday, a dormant whale moved $21 million worth of 4 DeFi tokens to the crypto exchange Binance. The news received mixed reactions from the community, which worries about an incoming dump amid the recent retrace of the crypto market. Related Reading Whale Deposits $21 Million In DeFi Tokens To Binance [...]

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AAVE Price To $360? Crypto Analyst Identifies Pattern For Bullish Breakout

Despite the recent positive momentum in the market, the AAVE price seems to be back under bearish pressure over the past day. As a result of the dwindling sentiment, the price of AAVE has dropped beneath the psychological $200 level in the last 24 hours. However, a prominent crypto analyst on social media platform X has suggested that the DeFi token wont be down for long. According to the crypto pundit, the AAVE price could begin a new bullish rally, with its sights on the $360 mark. AAVE Price Prediction: Analyst Forecasts 80% Surge Popular crypto trader Ali Martinez took to the X platform to share a video, explaining AAVEs potential path to return to its former price highs in the current cycle. This optimistic prediction is based on a developing broadening formation on a medium-term timeframe of the AAVE price chart. Related Reading: Bitcoin Price Crash Incoming? Why A Fall To $63,000 Is Possible If This Resistance Holds For context, a broadening formation is a price pattern in technical analysis characterized by two diverging trendlines; a rising upper trendline (connecting a series of higher highs) and a falling lower trendline (connecting lower lows). This pattern is often associated with a period of increasing price volatility (or significant price action). Typically, broadening patterns are bearish chart formations for most asset prices, as they are often correlated with rising volatility without a clear indication of the next direction. However, the current formation appears to be bullish and could prove a pivotal turning point for the AAVE price. According to Martinez, the DeFi coin looks primed for a bullish break out of the developing broadening pattern. However, the AAVE price would need to breach the crucial resistance level of around $250 before this bullish breakout can be confirmed. If AAVE successfully closes above this $250 resistance zone, investors could see its price travel to as high as $360 over the next few weeks. This would represent an over 80% surge from the current price point. Can Whales Push AAVE To $250? As of this writing, the price of AAVE is hovering around the $200 mark, reflecting an over 6% decline in the past 24 hours. According to CoinGecko data, the AAVE price is up by 4.3% on the weekly timeframe. While the DeFi coin is far away from the critical $250 mark, the appropriate positive catalysts might be all it needs to cross this level in a few days. One such catalyst that could prove crucial is the rising activity of AAVE whales in recent days. Data from Santiment shows that the AAVE token saw the largest increase in the amount of $100,000 whale transactions over the past week. The number of these large transactions skyrocketed by more than 267% in the highlighted period. Related Reading: This Bitcoin Price Range Could Be The Bulls Final Defense Line, Report Says Featured image from Binance Academy, chart from TradingView

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How Aave Helped JP Morgan Complete Its First DeFi Transaction

Legacy financial institutions are embracing crypto and decentralized finance (DeFi), and the Ethereum-based protocol Aave is proof. Today, the team behind the protocol announced that banking giant JP Morgan Chase completed its first DeFi transaction. 5/5 @jpmorgan transacting on a public blockchain using Aave smart contracts is a huge milestone for DeFi, and represents a massive step towards bringing traditional financial assets into DeFi, to fully realize the opportunities afforded by smart contract based dApps. — Aave (@AaveAave) November 2, 2022  This represents a major milestone for the sector that continues to see high demand and adoption despite the downside trend in the crypto market. Two years ago, the total value for the DeFi sector, as measured by the total value locked (TVL), was less than $5 billion. Related Reading: Bitcoin Bullish Signal: Whales With 1k-10k BTC Have Been Accumulating In a short period, this metric will increase by over 20-fold, reaching an all-time high of around $170 billion by 2021, according to data from DeFi Llama. Today’s milestone marks a new era for the nascent sector and digital assets. Aave Supports Major JP Morgan Transaction According to the official announcement, JP Morgan leveraged a “modified” version of the Aave protocol. Due to its higher scalability, the project used Ethereum’s second-layer solution, Polygon. The team behind the protocol said: The Aave protocol was utilized by involving the supply and borrowing of tokenized foreign exchange transactions, using SGD tokenized deposits (1st issuance of tokenized deposits by a bank!) issued by J.P. Morgan and JPY tokenized assets issued by SBI Digital Asset Holdings. The transactions are part of the Monetary Authority of Singapore (MAS) led “Project Guardian.” The initiative explores ways to bridge legacy financial institutions with decentralized finances “across a broader range of use cases.” WORLD! J.P. Morgan has executed its 1st *LIVE* trade on public blockchain using DeFi, Tokenized Deposits & Verifiable Credentials, part of @MAS_sg Project Guardian ??????https://t.co/XI212SG4zg Many world 1sts here, & since this is public ? here’s a transparent??on what we did: — Ty Lobban (@TyLobban) November 2, 2022  In addition to JP Morgan, other major banking institutions are participating in the initiative, including DBS Bank, SBI Digital Asset Holding, and the Oliver Wyman Forum. These transactions are the first in a series of pilot tests to explore the potential for DeFi and digital assets to improve the interoperability and efficiency of legacy financial markets. Related Reading: Ripple (XRP) Sits On Key Support; Here Is What Could Happen If $0.45 Fails Project Guardian was announced in May 2022, its objective is to “identify” the key areas where traditional financial institutions and DeFi protocols can collaborate. So far, the initiative has identified pilot programs to “unlock economic value,” the study of regulatory and risk management, developing technology standards, and others as areas of interest. Chief FinTech Officer at MAS, Sopnendu Mohanty, said: The live pilots led by industry participants demonstrate that with the appropriate guardrails in place, digital assets and decentralised finance have the potential to transform capital markets. This is a big step towards enabling more efficient and integrated global financial networks. Project Guardian has deepened MAS’ understanding of the digital asset ecosystem (…).

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Whale Rapidly Accumulating Chainlink: Whats Going On With LINK?

A mysterious whale is rapidly accumulating Chainlink (LINK). According to Lookonchain, the unknown entity, possibly an institution, withdrew over 2.2 million LINK (worth $42.38 million) via 47 new wallets from Binance, the world’s largest crypto exchange by trading volume, in two days. This sudden block withdrawal now raises questions about what’s driving the whale’s interest and what it could mean for LINK in the coming days. Chainlink Is Key In DeFi And NFTs, Gradually Improving  Chainlink is a popular project that provides secure middleware services and allows smart contracts to access tamper-proof external data. For this role, the platform has been adopted by multiple protocols offering decentralized finance (defi) services in Ethereum and beyond.  Additionally, Chainlink plays a role in non-fungible tokens (NFTs) through its random number generator (RNG). It continues to release new products and enhance its features. Related Reading: Market Dip? Not For Dogecoin Wallets As Over 400,000 New Users Drive Frenzy Upward To illustrate, in November, Chainlink upgraded its staking mechanism, releasing v0.2, which significantly increased the pool size to 45 million LINK.  The platform noted that the decision was to attract more investors and, more importantly, bolster its security while concurrently aligning with its broader objective of attaining the “Economics 2.0” plan. Initially, staking began in December 2022. The goal was to incentivize participation by expanding the utility of LINK and allowing stakers to receive rewards.  The release of v0.2 in November means more tokens can be locked, helping make LINK scarce, considering the role of the token in the vast Chainlink ecosystem.  Trackers show that over 40.8 million LINKs have been locked so far. Chainlink confirms that anyone can earn a variable reward rate of 4.32%. Beyond staking, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is gaining adoption. To illustrate, the Hong Kong Monetary Authority (HKMA) initiated its first phase of e-Hong Kong Dollar (e-HKD) trials in November, integrating CCIP.  Related Reading: Ripple Initiates Large XRP Transactions Post Legal Setback As part of this trial, the regulator wanted to illustrate the capabilities of programmable payments enabled by Chainlink via its solution, CCIP. In DeFi, protocols such as Synthetix and Aave have adopted CCIP.  Will LINK Breach $20? With more protocols and traditional institutions leveraging the technology, the demand for LINK (and prices) will likely increase as the fear of missing out (FOMO) kicks in. While the whale’s motives remain unknown, their large-scale LINK accumulation suggests they might be bullish on the token. Notably, it coincides with the sharp expansion of LINK prices in the past 48 hours.  So far, the token is changing hands slightly below the $20 psychological resistance. Any breakout above this level might lift the token to around $35 in Q3 2021. Feature image from iStock, chart from TradingView

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AAVE Dominates DeFi Lending Metrics Reveal 45% Market Share

Aave (AAVE), the leading decentralized finance (DeFi) lending protocol, has captured the spotlight with an extraordinary surge of over 200% since November 5. Outperforming the broader market, AAVE has reached its highest levels since 2021, marking a remarkable recovery and reaffirming its dominance in the DeFi ecosystem. Related Reading: ONDO Exchange Inflows Grow Volatility Ahead? Key metrics from IntoTheBlock underscore AAVE’s unmatched position in the lending sector. With an impressive 45% market share, it remains the top choice for users seeking decentralized borrowing and lending solutions. With AAVE trading at multi-year highs and on-chain data suggesting robust activity, the altcoins trajectory remains a focal point for investors and analysts alike. The question is whether the price can sustain this momentum and reach new all-time highs in the coming months. AAVE Keeps Growing  Aave (AAVE) has shown consistent growth over the past year, solidifying its position as a market leader in the DeFi lending sector. Known for its innovative approach to creating non-custodial liquidity markets, Aave enables users to earn interest on supplied and borrowed assets at variable interest rates. This approach has made Aave a go-to protocol for decentralized borrowing and lending. For years, Aave has been at the forefront of DeFi innovation, continually enhancing its platform and user experience. Its success is evident in its market dominance. Metrics from IntoTheBlock highlight Aaves unrivaled leadership, boasting an impressive 45% market share in the DeFi lending space. This dominance is further emphasized by Aave’s staggering total value locked (TVL), which stands at $21.2 billionalmost equal to the combined TVL of all other lending protocols. Related Reading: Ethereum On-Chain Metrics Looking Strong Momentum Building For ETH? Such figures underline Aaves critical role in the DeFi ecosystem. Its established presence and robust infrastructure position it as a key player in the event of a broader DeFi resurgence. Should the sector heat up in the coming weeks, Aave is likely to attract significant attention from investors and traders. Price Targets Fresh Supply Levels Aave (AAVE) is currently trading at $366, following a surge to a multi-year high of $396 just hours ago. The altcoin continues its upward momentum as it approaches the critical $420 resistance level, a threshold last held in September 2021. This mark is seen as a pivotal area for AAVEs next phase of price action, with many analysts expecting a significant reaction once tested. If AAVE manages to hold its current levels and sustain the bullish momentum, the next logical target would be the $420 resistance zone. Breaking above this level could signal a continuation of its multi-month rally, setting the stage for even higher price targets as investor confidence builds. On the downside, failure to maintain support above the $320$340 range could lead to a broader correction. A move below this zone might push the price lower, erasing some of its recent gains and dampening bullish sentiment in the short term. Related Reading: Dogecoin Will See New ATH Soon Top Trader Sets $2 Target AAVE remains in a strong position for now, but traders are closely monitoring its price action near these key levels. Whether it can sustain its upward trajectory or faces a pullback will depend on its ability to break and hold above significant resistance zones. Featured image from Dall-E, chart from TradingView

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AAVE Price Soars 26% In A Single Week Will Rising FOMO Lead To A Bust?

The cryptocurrency market has been fairly positive over the past week, with the decentralized finance (DeFi) sector and tokens particularly impressive over the last seven-day span. Aave price, for instance, seems to have taken off after making a somewhat tame performance in the remarkably bullish month of “Moonvember.” According to data from CoinGecko, the price of AAVE has increased by more than 26% over the past week. However, the latest on-chain data suggests that the DeFi token may face some hurdles in its bullish trajectory and suffer a slight setback in the short term. Is AAVE Price Going To Witness A Correction? In a recent post on the X platform, prominent crypto analyst Ali Martinez revealed that the investor sentiment around the Aave token has become increasingly positive following its latest price upswing. This on-chain observation is based on the Social Volume and Weighted Sentiment metrics. Related Reading: Bitcoin Daily Bollinger Bands Expand, Why BTC Price Could Rise To $120,000 As Early As Next Week The Social Volume metric measures the total number of mentions of a particular crypto asset on various social media platforms in the last 24 hours. In essence, it tracks the degree of discussion surrounding a cryptocurrency on social media. Meanwhile, weighted sentiment is a product of sentiment score and social volume. Typically, there is a significant shift in this metric when the social volume is high and there is a specific average sentiment (either positive or negative). Based on data from Santiment, the social volume and positive sentiment around the AAVE price action have grown significantly over the past few days. As shown in the chart below, this soaring positive sentiment correlates with the Aave price surge over the past week. According to Martinez, a brief price correction might be on the cards for Aave, especially with the crypto crowd seemingly hyped about the DeFi tokens price performance. This is based on the notion backed by historical data that crypto prices often in the opposite direction of the crowd. Recent price action data shows that the Aave price might be falling into something of a consolidation range, having failed to hold above the $380 mark on Friday. As of this writing, the Aave token is valued at $365, reflecting a mere 0.4% increase in the past 24 hours. DeFi Coins Back At It? Most of the attention has gone to the meme coins and deservedly so in this bull cycle. However, it appears that prominent DeFi coins are beginning to pull their weight and stake a claim for the spotlight. Related Reading: Dogecoin Bullish Takeover: DOGE To Outperform Bitcoin By 2,400% Heres How The past week saw many large-cap DeFi tokens, besides AAVE, grow in market value. According to data from IntoTheBlock, the market capitalization of the DeFi token sector nearly doubled to $20 billion in the past week. Featured image from Unsplash, chart from TradingView

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Is This VC Cashing Out? Moves UNI, COMP, AAVE, And SNT Tokens To Binance

Fenbushi Capital, a blockchain-centric venture capital (VC), appears to be cashing out after moving four tokens, including Aave (AAVE) and Compound (COMP), to Binance. The VC is moving these tokens to the exchange, possibly to sell and lock in their profits or cut losses when market participants expect prices to tick higher. Fenbushi Capital Cashing [...]

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Aave Address Count On Optimism Rapidly Growing, Will Price Rise To New 13-Month High?

Aave, the decentralized lending platform, is among the largest DeFi protocols by total value locked (TVL). Over the years, despite the crypto price boom and bust cycle, the platform has operated flawlessly without any technical hitches. Aave User Address Grew By 675% In One Week Since the beginning of the year, Aave has dominated headlines, mostly around its price performance and rising TVL. However, looking at other metrics, the lending platform is performing solidly. Related Reading: Bitcoin Price To $95,000? Heres What Needs To Happen First According to Santiment, Aave on Optimism is the fastest-growing protocol on their watch among platforms, commanding at least $500 million in TVL. The number of Aave addresses on Optimism grew by 675%, roughly twice that of KuCoin tokens (KCS).  At this pace, Aave outperformed Maker–another lending and borrowing protocol on Ethereum, Chainlink on Optimism, and Raydium–a top decentralized exchange (DEX) on Solana. Of note, Chainlink on Optimism and Raydium grew over the last week by 100%. The fact that Aave on Optimism grew faster than Raydium, the top DEX on Solana, is a milestone. By default, any meme coin launching on Pumpfun that achieves at least 69 SOL automatically lists on Raydium. Although only a small percentage graduate and are listed on Raydium, tens of thousands of meme coins launch on the meme coin launchpad on Solana. Santiment now thinks AAVE prices may likely benefit from this growth. Pointing to historical performance, the sentiment analytics platform said there is usually a strong correlation between rising utility and consistent growth with long-term gains. According to Dune, there are over 49,800 unique daily users of Aave v3 on Ethereum. Over the last two days, there were 70 new users. While there is growth in the number of cumulative users, as expected, the number of new users remains steady. Will Prices Rise To Fresh 2024 Highs? AAVE is trading above $150, trending at around 2024 highs. Although the token is in an uptrend, prices have moved sideways over the past four weeks. Technically, a close above $180 could drive demand, lifting prices to new 2024 highs in the coming days.   Possible drivers include the recovery of DeFi and other project-related factors. As of October 17, 56% of all cbBTC–the Bitcoin stablecoin by Coinbase–was locked in Aave. Related Reading: Market Data Hints At 500x XRP Rally In Upcoming Altcoin Season The protocol also plans to launch a new Merit Program for cbBTC. Those who borrow USDC by issuing cbBTC as collateral will receive more rewards if they move their debt from USDT to USDC. Moreover, those who switch from wBTC to cbBTC collateral will receive additional collateral. Feature image from UnSplash, chart from TradingView

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AAVE Faces Major Price Drop As TD Sequential Signals Sell Details

The Aave (AAVE) market suffered significant losses in the past week as price declined by 17.07% according to data from CoinMarketCap. While the DeFi token has shown some stability in the last 24 hours, certain market indicators suggest the bearish storm may be far from over. Related Reading: DeFi Exploits Plunge 40% In 2024, But Centralized Exchange Losses Soar Report AAVE Could Crash By 30% If Signal Holds  In a recent post on social media platform X, crypto analyst Ali Martinez shared a hawkish prediction on the AAVE market. According to Martinez, the TD Sequential indicator has presented a sell signal on the AAVE weekly chart, suggesting a major decline on the horizon. In trading, the TD Sequential developed by Tom DeMark is used to identify potential turning points in price trades. It basically indicates when an asset’s price is overextended in a particular direction and due for a reversal. Based on Martinez’s forecast, if the TD Sequential sell signal holds, AAVE could undergo a significant correction falling to around $264. However, in the presence of overwhelming selling pressure, the L2 token could be headed for $203, indicating a possible 29.5% decline from AAVE’s current price.   Interestingly, this bearish prediction is backed by other indicators. Firstly, Relative Strength Index indicator has a value of 62.57 indicating that AAVE is still far from the oversold zone and may experience further decline in the coming weeks. Furthermore, the assets 100-day simple average is also far below the current price which can be interpreted as another bearish signal. Clearly, there’s much need to apply caution in engaging the present market. At press time, AAVE trades at $290.04 after a slight 2.48% gain in the last 24 hours. However, its daily trading volume has dipped by 48.99% which may potentially indicate that selling pressure is beginning to ease up. Related Reading: Altcoins Surge As Crypto Market Kicks Off 2025 On A High Note Aave Set To Launch V4  Despite the ongoing price struggle, the Aave protocol continues to record positive development. Most recently, NewsBTC reported that Aave registered $35 billion in total net deposits, representing an all-time high value since 2021. In addition to this, the DeFi protocol is preparing to launch its V4 network upgrade that is expected to introduce advanced risk tools and unified liquidity among other benefits. According to data from DeFiilama, AAVE continues to rank as the second largest DeFi protocol with a Total Value Locked (TVL) of $20.4 billion.  The decentralized lending platform falls only behind liquid staking protocol Lido Finance which boasts of a TVL of $31.60 billion. Featured image from iStock, Chart from Tradingview

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Aave Extends Losses But Here Are The Short Selling Targets

After experiencing a promising start to the year, AAVE faced a setback when it encountered resistance at the $92 level, resulting in a 34% correction over a two-month period. The recent blow to the crypto market caused by the SEC suing Binance has further impacted the altcoin’s performance. In the past 24 hours, AAVE has [...]

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