• Aave secured a $6 million revenue during Monday’s crypto market sell-off.
  • More than 1 billion was liquidated across the crypto derivative market.

On August 5, the decentralized finance (DeFi) protocol Aave showed notable strength amid a severe crypto market plunge. Aave generated $6 million in revenue from decentralized finance liquidations. This spike in revenue is a response to economic events, like the interest rate hike by the Bank of Japan and the U.S. jobs report.

Moreover, at the time of writing, the crypto market briefly experienced a rebound with Ether (ETH), spike over 6.62% the last 24 hours . Also, Aave’s native token (AAVE) saw its market cap spike by 21.23%. Overall, the crypto market cap increased to $1.97T, marking a 4.17% increase over the last day.

The market turmoil led to a staggering $433M in liquidations in the last 24 hours across the sector, and more than $1 billion liquidated across the crypto derivatives market. Aave was particularly fortunate, to turn this volatility into an opportunity. 

Also, a notable transaction involved a $7.42 million wrapped Ether (WETH) position, which alone generated $802.218 in revenue for Aave, according to on-chain data. The data shows that Aave’s V3 recorded revenue amounting to $2 million in a single day.

Aave’s Stability Amid Market Turbulence

Stani Kulechov, Aave’s founder, highlighted the protocol’s booming performance in an X post. He reported that Aave had successfully withstood 14 active markets on various Layer 1 (L1) and Layer 2 (L2) blockchains, securing a total value of $21 billion. 

The total value locked (TVL) in DeFi protocols dropped from $100 billion to $71 billion at the start of the month, reflecting broader sector challenges . According to Defilama, DeFi platforms show a $79.57B TVL which dipped from yesterday’s $85.195B value. The crypto community has responded positively to Aave’s performance, with many praising its stability during this turbulence.

However, Token Terminal reported an increase in active loans within the DeFi space, reaching $13.3 billion indicating a potential pioneer in a market rebound. Therefore, amid market conflicts, Aave’s strong performance and liquidation strategy highlight DeFi’s resilience amidst market volatility.

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