AAVE price slides 15% but buyers scoop the dip amid tokenized yield market boom

The AAVE price has slipped more than 15 % in four days, but buyers quickly recorded the decrease, which led to a rise of 20 % of the prosperous symbolic markets in Pendle in the AAVE protocol.

AAVE (AAVE) price decreased more than 15 % in only four days, from 283 peak dollar on May 27 to $ 240 decrease per day. However, buyers rushed to attract the decline, which prompted the price of AAVE above $ 254 between peaks inside the day although he has since recovered to $ 251.

The apostasy comes amid a period of increased activity on the AAVE protocol, especially with regard to the growth of the distinctive return markets in cooperation with Pendle (Pendl) and Ethena (ENA).

On May 27, support for three new types of guarantee-Eusde, July, MATURITY PT-Usde, and Motherness PT-EUSDE- to AAVE, bringing the total initial market size about 700 million dollars. The next day, on May 28, Pendle launched two of these markets with $ 100 million supply caps for PT-EUSDE and $ 40 million for PT-Usde. Both hats were fully occupied within hours, prompting Bandal to raise the border on May 29 to $ 200 million and 80 million dollars, respectively. These upper covers are rapidly filled again, which reflects a strong demand for the distinctive return tools on AAVE.

PT-Usde and PT-Eusde are the main symbols that represent a fixed return on the main assets located within the Pendle protocol. These symbols enable users to trade the future return and invest it by separating the components of their main and component assets. In order to be clear, the Ethaina points were added to AAVE a month ago, but support for the new EUSDE, JULY PT-Usde and Aug Pt-Eusde species was added to AAVE on May 27.

Although these PT codes do not directly affect the price of AAVE, they show the increasing use and demand on the AAVI DEFI platform, which can help the privileged code value in the long run. With more users available for assets to trade these main codes, TVL increases from AAVE. As of May 20, AAVE made 20 % of all TVL in the Defi sector, according to the data shared by the protocol. The growth in TVL can benefit from AAVE holders for his role in governance and generally with a greater dependence that tends to increase the value of the network and the investor’s confidence.

Meanwhile, the AAVE price is likely to look to a 12 % transition+ of the current level of $ 251 as it targets resistance at $ 283, as DIP is likely to be a healthy bull and the highest level in the broader upward direction.

Once the immediate resistance was wiped 283 dollars, the next main level that must be monitored is a $ 300 psychological sign, which also served as strong support during December gatherings, which will represent approximately 20 % over the current price.