Aave Deposits Plummet Below $300B Amid Risk Aversion

Aave, one of the leading decentralized finance (DeFi) lending platforms, has seen a significant drop in its total deposits. According to recent data, Aave's total deposits have fallen below $300 billion, marking a brutal outflow of funds that amounts to over 35% of its previous total.

The decline comes after the rsETH incident, which has led to risk aversion among investors. Many whales and institutions have bolted from Aave, dragging its deposits down from $485 billion to $307 billion in just a few days. In contrast, rival Morpho shed only $15 billion, while SparkLend saw an influx of fresh capital.

The ETH price prediction pressures are also affecting rival platforms, causing volatility in the DeFi lending space. However, technical analysis suggests that Ethereum's price action is holding firm in a bullish structure, with MACD flashing a golden cross and RSI sitting neutral.