AAVE's trading volume has sharply declined, dropping nearly threefold over the past two days, while fees generated by the protocol have decreased fivefold. The volume fell from approximately $900 million to under $300 million, and daily fees dropped from over $8 million to less than $2 million. This decline suggests reduced market participation and potential challenges for protocol growth.
Despite the bearish trend, AAVE has seen positive developments in liquidity and whale inflows. Stablecoin liquidity on the platform has increased, with a total supply of $500 million, ensuring sufficient trading capacity. Additionally, AAVE recorded the highest whale inflows in the last 24 hours, totaling $588.3 million, surpassing other major projects.
Technically, AAVE's price is struggling, trading near $114, below the critical $120 level. The Dynamic VWAP indicates a bearish trend, with the price below the VWAP on the 4-hour chart. The anchored VWAP's decline and high ADX suggest strong selling pressure, with potential further declines if bulls fail to reclaim key levels.
AAVE Trading Volume Plummets as Price Dips Below Key Support
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