- Aave faced $200M liquidations but avoided a rise in bad debt, maintaining stability.
- Aave network shows strong liquidity, with $18.3 billion in total value locked (TVL).
- Despite price decline, Aave’s technical indicators suggest potential for price recovery if market stabilizes.
Aave—AAVE, recently faced a massive liquidation event of over $200 million in just 24 hours. Despite this significant drop, the platform remains resilient. In a market rocked by volatility, Aave’s stability stands out. The question is: how has AAVE managed to stay strong during this challenging time?
Liquidations Breakdown and Network Health
In the last 24 hours—as of writing, Aave saw $205,443,590 in liquidations, the highest since August 2024. This represents around 30% of all liquidations on the platform to date. Even with this high volume, Aave managed to avoid a major increase in bad debt, which actually decreased. This points to solid risk management within the platform.
Aave’s network is still healthy. The total value locked stands at a solid $18.3 billion. Despite concerns over growing liquidations, Aave’s liquidity remains robust. The decrease in bad debt highlights the platform’s effective collateral management. While more wallets are eligible for liquidation, Aave has shown the ability to minimize risk and maintain stability.
Technical Analysis and Market Sentiment
Aave’s price fell 5.12% recently, dropping to $259.34. Key support is at $230, while resistance sits at $360. These levels suggest possible price fluctuations in the near future. Technical indicators show that diagonal support might create a foundation for recovery if the market stabilizes.
Investor sentiment is currently split, but bulls have slightly outnumbered bears recently. The strong support levels give hope for a rebound. If Aave can keep managing collateral and debt risks effectively, a recovery in price seems likely.
For now, Aave’s strength through the $200M liquidation event shows a well-managed platform. Solid risk control and collateral management have kept the system stable. As long as key support levels hold, AAVE could experience a price rebound soon.
