AAVE Sees 64% Flash Crash as DeFi Protocol Endures ‘Largest Stress Test’
The native token of Aave, the largest decentralized crypto lending protocol, experienced significant volatility during Friday's crypto flash crash but showcased resilience.
- AAVE's price fell 64% from $270 to $100, marking a 14-month low, before recovering to near $240, still down 10% over 24 hours.
- Aave's founder, Stani Kulechov, called it the "largest stress test" for their $75 billion lending infrastructure.
- Despite market turbulence, Aave effectively liquidated $180 million worth of collateral within an hour without human intervention, highlighting its operational resilience.
Key Price Action:
- AAVE experienced a dramatic decline, followed by a 140% recovery from intraday lows with substantial trading volume of 570,838 units.
- Post-crash, AAVE consolidated within a $237.71-$242.80 range.
Technical Indicators Summary
- Price volatility reached 64% during the 24-hour period.
- Trading volume surged significantly beyond the average.
- Near-term resistance at $242.80 capped the rebound during consolidation.