CandleFocus

Aave price dropping since mid-September despite $500M revenue: here’s why

Aave, a popular decentralized finance (DeFi) protocol, has seen a significant surge in revenue, reaching $500 million since the start of 2024. This places Aave among the top revenue generators in the DeFi space. However, despite this success, the price of AAVE has been decreasing since mid-September. The drop in price can be attributed to several factors, including a decline in network activity, decreased user engagement, a decrease in the birth-to-death ratio of addresses, and increasing selling pressure. These factors have led to a bearish sentiment and lower demand for the token. Despite the challenges, there is hope for a potential bullish reversal if Aave can sustain a crucial support level at around $135 and regain investor confidence.

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