Crypto Market Rattled by $1 Billion in Liquidations, Aave Jumps 15%

The cryptocurrency market experienced significant volatility as about $1 billion in futures positions were liquidated. Bitcoin rebounded to around $61,500, but its price dropped by about 10% from a high near $65,500 earlier this week.

Altcoins such as Ether and Solana also moved lower, with losses partly limited by a rebound in AI chip stocks and token-specific gains in parts of the decentralized finance market. Aave stood out among individual tokens, climbing about 15% over 24 hours to trade near $80 after Standard Chartered set a $3,500 price target for the end of 2030.

According to Geoff Kendrick, Standard Chartered's global head of digital-asset research, Aave could regain a dominant position in decentralized lending. He projects total assets across the DeFi market could grow about 37-fold by 2030, with Aave rising to $180 by the end of this year and potentially reaching $2,200.

However, uncertainty remains over whether the long-term target can be reached, as Aave's share of the DeFi lending market fell to 38% from an average of 59% following a hack at KelpDAO in April. Markets are wary of further volatility through the end of the quarter, with about $1.6 billion in leveraged long positions sitting below $58,000 in Bitcoin.