A recent downturn in the cryptocurrency market has seen Aave (AAVE) experience significant losses. According to available data, the total crypto market cap fell by approximately 1.85% over a 24-hour period, from around $2.15 trillion to $2.11 trillion.
This decline is not isolated to AAVE, but rather reflects broader market trends. High-beta DeFi tokens like Aave (AAVE) tend to experience more pronounced losses during such events.
Another factor contributing to AAVE's decline is the role of Ethereum (ETH) in the selloff. A previously dormant whale deposited 20,000 ETH into Aave V3 and leveraged it against USDT. As ETH broke key supports and long positions were liquidated, Aave's involvement likely impacted sentiment towards the protocol.