Aave’s TVL on the line as whales trim their balances

ambcrypto.com:

Decentralized Finance (DeFi) protocols have maintained healthy activity despite taking a massive hit during the bear market. Top DeFi projects felt the impact in the form of liquidity outflows but many have survived.

Aave is currently the leading DeFi project within the Polygon ecosystem.

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According to the latest ranking conducted by the Twitter account Ben GCrypto, Aave’s total value locked (TVL) clocked in at $317 million.

Quickswap came in second with $166 million while Balancer had the third-highest TVL at $132 million.

Despite Aave being at the top of the Polygon table as far as TVL is concerned, its native token experienced increased sell pressure since the start of the week.

— Ben GCrypto (@GCryptoBen) March 1, 2023

An analysis of AAVE’s supply dynamics reveals that AAVE’s supply on exchanges increased since the start of the week.

At the same time the supply outside of exchanges tanked by a sizable margin during the same period. These observations point toward an increase in sell pressure.

Source: Santiment

The exchange flows data reflects observations in AAVE’s supply distribution. The metric reveals a sharp drop in the balances of addresses holding the most tokens.

This includes addresses within the 10,000 to 10 million AAVE bracket. Addresses within this category controlled over 60% of AAVE’s current circulating supply.

Source: Santiment

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