AAVE Price Declines Amid Record TVL and Revenue Growth, Indicating Mixed DeFi Market Sentiment

Key Points

1. AAVE token dropped 23% from its July high of $337, entering a local bear market phase.

2. Total value locked (TVL) surged to a record $35 billion, up from $21 billion at the start of the year.

3. Ethena's rapid asset growth to nearly $5 billion significantly contributed to AAVE's TVL increase.

4. AAVE maintains a strong position in the competitive DeFi lending market, with a 49% monthly fee increase and 85% revenue growth in July.

5. Technical indicators show AAVE has broken below its 50-day and 100-day EMAs, with a critical support level at $250.