- It was said that the DeFi industry did well in spite of the general market turbulence.
Leading DeFi platform Aave Protocol generated over $6 million in sales during the current market downturn.
Aave made $802,000 from a $7.4 million wrapped Ether (WETH) liquidation, according to on-chain data, which indicates a spike in liquidation activity on the platform. Blockanalitica reports that Aave V3 saw $233 million in liquidations overall, the protocol’s greatest single-day amount.
Stani Kulechov, the founder of Aave, disclosed that as a result of these noteworthy actions, the protocol enabled liquidations to bring in $6 million in a single night.
Kulechov underlined that the protocol’s income from these liquidations shows how resilient it is and highlights the need of incorporating DeFi.
Aave Chain creator Marc Zeller echoed Kulechov’s comments, pointing out that the platform was doing well despite the general market turbulence.
Based mostly on the Ethereum network, DeFillama statistics indicates that Aave is the largest crypto-lending platform in the market. At the time of publishing, the total value of the assets locked on the platform was around $9.8 billion.
DeFi maintains its strength
Despite recent market volatility, Aave’s strong performance over the last day reflects a larger trend within the DeFi sector.
Important DeFi protocols operated without incident during the erratic market, according to DeFi researcher Ignas.
He claims that Lido’s stETH withdrawal queue has not increased significantly and that there has been little depegging of liquid staking asset assets, with stETH, ezETH, and weETH all declining from ETH by 0.4%, 0.6%, and 1%, respectively.
He went on to say that even though ETH gas prices reached 370 gwei at one point, they have subsequently leveled out around 20 gwei. Furthermore, DeFi does not face any material threats of liquidation until ETH drops below $1,771 or WBTC reaches $31,000.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
