AAVE Increases 12% And Makes Sense For Investors After Harmony’s Hack
The second biggest DeFi protocol in the world, AAVE took a massive hit over the last three months after the total value locked on the lending dApp fell from $14 billion to $5.03 billion. That’s not all. AAVE was also affected during the recent Harmony’s $100 million hack.
AAVE is involved in the Harmony hack?
AAVE V3 Harmony was also impacted by the compromised Ethereum-Harmony bridge. The protocol was broken since the assets that were misused, namely DAI, USDC, USDT, and AAVE, were also mentioned on the protocol.
V3 did not suffer any losses, though, as it was not the attack’s main aim. The only losses it has experienced come from the general bearishness of the market, which led to a value decrease of 21%. But in the last 24 hours, the asset increased by 12.7%, boosting investor confidence.
However, it is uncertain whether the altcoin’s surge would lead to a recovery; much more will be required than just a green bar. AAVE, which is currently trading at $63.07, has a chance to rise the charts because it has the backing of its investors, which is becoming less common these days.
On an average, AAVE investors have been conducting transactions amounting to more than $40 million, with the same peaking at $127 million towards the end of June.
This is the fact that more than 89.5% of this token holders have been facing losses for more than a year now. The last time all AAVE investors were in profit was back in January 2021.
Since the rest of the market continued to be in a slump and at the same time, investors abstained from departing the market, this also started to have an impact on each investor’s average balance in their wallet. The average balance thus decreased from its peak of $175.3k in February 2021 to just $8.1k as of 4 July.
It is impossible to predict what strategies investors will use going forward because AAVE and Bitcoin have a very high correlation of 0.89, which makes it vulnerable to price drops and presents opportunities for price rallies.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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AAVE Increases 12% And Makes Sense For Investors After Harmony’s Hack
The second biggest DeFi protocol in the world, AAVE took a massive hit over the last three months after the total value locked on the lending dApp fell from $14 billion to $5.03 billion. That’s not all. AAVE was also affected during the recent Harmony’s $100 million hack.
AAVE is involved in the Harmony hack?
AAVE V3 Harmony was also impacted by the compromised Ethereum-Harmony bridge. The protocol was broken since the assets that were misused, namely DAI, USDC, USDT, and AAVE, were also mentioned on the protocol.
V3 did not suffer any losses, though, as it was not the attack’s main aim. The only losses it has experienced come from the general bearishness of the market, which led to a value decrease of 21%. But in the last 24 hours, the asset increased by 12.7%, boosting investor confidence.
However, it is uncertain whether the altcoin’s surge would lead to a recovery; much more will be required than just a green bar. AAVE, which is currently trading at $63.07, has a chance to rise the charts because it has the backing of its investors, which is becoming less common these days.
On an average, AAVE investors have been conducting transactions amounting to more than $40 million, with the same peaking at $127 million towards the end of June.
This is the fact that more than 89.5% of this token holders have been facing losses for more than a year now. The last time all AAVE investors were in profit was back in January 2021.
Since the rest of the market continued to be in a slump and at the same time, investors abstained from departing the market, this also started to have an impact on each investor’s average balance in their wallet. The average balance thus decreased from its peak of $175.3k in February 2021 to just $8.1k as of 4 July.
It is impossible to predict what strategies investors will use going forward because AAVE and Bitcoin have a very high correlation of 0.89, which makes it vulnerable to price drops and presents opportunities for price rallies.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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