Aave (AAVE): Evaluating Performance After the V3 Launch

You probably have heard about decentralized finance (DeFi). What about Liquidity Providers? If you affirm, you should know Aave, a protocol that enables individuals to borrow & lend cryptos, stake liquidity in crypto form, and supply liquidity. The platform launched its V3 on March 16.

The protocol revealed that the Aave Platform V3 brought substantial changes within the network. The changes included gas optimization, enabling cross-chain transfers, listing assets while safeguarding the protocol, ensuring high borrowing powers, and multiple system upgrades.

Evaluating AAVE performance revealed attractive action in April’s early sessions following the launch. Nevertheless, reversals followed, dragging AAVE price further lower. What other things did we discover?

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AAVE Price Struggle

AAVE traded around $122 on March 16, during the V3 upgrade launch. Meanwhile, the token hovered at $101 after 75 days. That period had Aave dropping 17% of its value. Nevertheless, the phase under review had the altcoin hitting the $259 high on April 1.

AAVE succumbed to the market-wide corrections that dominated April, translating to downward movements. The token lost more than 50% between then and now. Nevertheless, most assets took a massive beating during the ongoing bear market.

Also, the AAVE market cap witnessed some drop during the period under assessment. The metric hovered around $1.66 billion during the V3 launch on March 16. However, bearishness had AAVE losing 15% of the market capitalization. While publishing this content, the asset’s market cap stood at around $1.41 billion.

Furthermore, AAVE wasn’t a stranger to retracements that most tokens succumbed to in April. Actions on its price chart displayed a bearish trend in April – the Money Flow Index and the Relative Strength index taking spaces in overbought territories as the overall market saw corrections.

Meanwhile, the indicators resorted to uptrends since AAVE launched reversals, indicating gradual accumulations of the coin. While writing this content, the Relative Strength Index hovered near 48.84, maintaining an upside curve. Also, the MFI secured a spot within the 62.36 area.

Impressive Days Plus Mostly Ugly Ones

Evaluating on-chain data within the under review period shows average performance for the altcoin despite AAVE recording peaks on some metrics during some days. For instance, new addresses on the platform experienced a 55% drop. Though the platform saw new 603 wallets in March and 446 on May 13, the blockchain growth didn’t present substantial improvements.

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The transactions volume revealed similar trends, recording significant peaks twice only within the highlighted period. March 29 saw a 1.96 million transaction volume, whereas the figure stood near 2.03 million on May 11.

Moreover, AAVE had significant actions from whales between March 29 and April 1. The former date had 975 transactions worth over $100K. Also, the platform saw 862 transactions on April 1.

However, a significant drop followed, pegging the whale transaction metric at four during this publication. Also, the token recorded a 29 high for transfers beyond $1 million on March 29 and 25 transfers on March 31. Meanwhile, this metric dropped to 11 at this publication.