On Tuesday, September 24, the price of AAVE experienced a decline due to an increase in centralized exchange outflows, as indicated by on-chain data
AAVE, which was recently one of the most successful DeFi assets, has since declined to $164.5, a significant decrease from its peak of $178 earlier this week. Nevertheless, it continues to be 131% higher than its lowest point in July.
Nansen reported that AAVE experienced CEX outflows exceeding $6.35 million, representing a 4.96x increase from the most recent average.
CEX outflows are frequently perceived as advantageous for a cryptocurrency, as they suggest that investors transfer their tokens to self-custody, which indicates a long-term investment.
Additional data indicates that the top ten largest accounts purchased AAVE tokens valued at over $8.4 million, in contrast to sales valued at over $7.8 million. This implies that more investors are optimistic about AAVE and are anticipating a DeFi renaissance.
Meanwhile, DeFi Llama reports that AAVE has amassed over $12.53 billion in assets, most of which are in its V3 version.
One of the most profitable DeFi platforms, the network has collected over $260 million in fees in the last 12 months and borrowed $8.09 billion of these assets.
Additionally, the prospective interest of AAVE has maintained a high level. CoinGlass data indicates that daily open interest has maintained a $87 million or higher level since August 15, with a peak of $214 million on September 11.
Before that, its most significant open interest was $124 million on August 2.
The AAVE token has been in a solid ascending trend on the weekly chart for the past few weeks. Since June 2022, it has maintained its position above the ascending trendline that connects the lowest values.
Additionally, AAVE has reversed the critical resistance level at $154.21, its highest point in March of this year. While the Relative Strength Index is closing in on the overbought region, it has surged above the 25-week moving average.
Consequently, AAVE may continue its bull run, with investors aiming to reach the psychological level of $200.