The presence of the AAVE protocol and token in the DeFi space has been prominent since its launch. And with its third iteration, AAVE has cemented itself as a top lending protocol.

Anyway, its native token has yet to outperform its counterparts. At the time of writing, AAVE was the #50 largest cryptocurrency in the world by market cap.

AAVE goes down just when it goes up

A 34.45% rally is good enough for any asset to restore investor confidence. But when the same happened in the case of AAVE, the altcoin prompted investors to double their bullishness, resulting in high liquidations and sudden sell-offs within 24 hours.

AAVE price promotion | Source: TradingView – AMBCrypto

At the time of writing, 350,000 AAVE worth over $23.1 million has been cumulatively received by the wallets of cryptocurrency exchanges. However, this is not what defined AAVE’s worst day in history.

It was the desperation of the investors that led to it.

Sell ​​AAVE investors | Source: Santiment – ​​​​AMBCrypto

AAVE’s network-wide offering shows that total assets moved in the last 24 hours of June 21st moved at a loss. the current trading price of $66 was much lower than the price they were bought at.

This resulted in a total stock of $114 million at a loss, the highest figure ever in AAVE history.

AAVE delivery at a loss | Source: Santiment – ​​​​AMBCrypto

Further bolstering investors’ desperation was the fact that AAVE’s Long Term Holders (LTHs) and loyalists were moving their positions.

In addition, investors who had held their AAVE for more than a year for fear of additional losses decided to turn it around. As a result, they consumed more than 162.45 million days, the second highest ever.

Sell ​​AAVE LTH | Source: Santiment – ​​​​AMBCrypto

All in all, these three cases are proof that AAVE holders are not here for the long-term game. They are more likely to exit their position at the first sign of profit, just as they did on June 21.

Time to move on to AAVE V3?

The AAVE token has had no impact on AAVE V3 as the protocol is doing quite well. The total number of transactions related to borrowing, although lower than deposits, has only increased.

In the Polygon and Optimism markets, V3 has noticed a successful increase in its demand.

AAVE deposits and withdrawals | Source: Dune – AMBCrypto

As long as AAVE v3 continues to show steady growth, the AAVE protocol and token will manage to survive even if investors forgo it.

This post AAVE traders caught in a dilemma should check out these stats for more clarity

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