The recent launch of Aave’s real-world asset (RWA) tokenization platform, Horizon, has generated significant buzz in the decentralized finance (DeFi) space. Despite this growth, Aave’s price has fallen into a bear market, dropping over 21% compared to its highest point last week. This decline has led to a current price of $300, the lowest level since August 22nd, mirroring the performance of Bitcoin and other major cryptocurrencies.
Aave, a leading player in the DeFi industry, has seen its total value locked (TVL) in the network increase by 22% to $40 billion over the last 30 days. Additionally, seven-day fees have risen to $21.2 million, indicating a growing demand for the platform’s services. The introduction of Horizon has been a key factor in this growth, providing institutional investors with a bridge between traditional and decentralized funds.
Horizon Wealth Growth
Horizon allows institutional investors to borrow stablecoins as collateral using tokenized RWA assets. This innovation has facilitated access to loans via stablecoins for qualified institutions, submitting these tokenized assets. The platform has seen a strong start, with total funds available rising to $50 million and users borrowing token worth $6.2 million. This trajectory is expected to continue in the coming months, driven by the growing demand for DeFi services.
According to data, the most frequently supplied asset on the platform is Ripple USD (RLUSD), with over $26.3 million in assets, followed by USD Coin with $8 million. Other top players in the network include the Janus Henderson Anemoy Treasury Fund, with over $2.08 million in assets. This diversification of assets and growing user base underscores the potential of Horizon to drive growth in the DeFi space.
Aave Price Technical Analysis
The daily chart shows that the AAVE price dropped from a high of $385.32 to $300 last week, likely due to investors selling off after the Horizon launch announcement. Aave has moved into the middle of the rising channel, finding support in the sliding 50-day average. However, the token is likely to continue its downward trend as sellers aim for the lower side of the channel at $280.
A break under the lower side of the channel could lead to another decline, potentially reaching the lowest point on August 30 at $245. The token’s price action will be closely watched by investors and analysts, as it navigates the current bear market. Despite the growth of Horizon, the AAVE price remains at risk of further downside, underscoring the volatility and unpredictability of the cryptocurrency market.
Aave Price Diagram | Source: crypto.news
For more information on Aave’s price and the growth of its Horizon platform, please visit https://crypto.news/aave-price-at-risk-of-more-downside-despite-horizon-growth/
