Affected by Harmony Attack! -Altcoin Rising

World’s second largest DeFi protocol AAVE, the lender dApp has taken a big hit in the last three months after the total value of the lender dApp fell from $14 billion to $5.03 billion. Also, AAVE was affected during the last Harmony attack, which caused a loss of $100 million.

The Relationship between AAVE and Harmony Didn’t Go As Wished

The hacked Ethereum-Harmony bridge is also AAVE V3 Harmonyhad affected. The protocol was interrupted as stolen assets were also listed in the protocol, specifically DAI,USDC,USDT, and AAVE. However, V3 did not suffer any losses as it was not the primary target of the attack. The only losses he faced were the result of a downtrend that resulted in a 21% drop in the value of the broader market. However, the asset has gained 12.7% in the last 24 hours, proving that optimism still exists among its investors.

But it is not clear whether the altcoin will trigger a rally to rally, the existing “bullish light” has not yet created enough momentum. Traded at $63.07, AAVE may continue to climb the charts as it has the support of its investors, which has become relatively rare these days.

AAVE

On average, AAVE investors process over $40 million and peaked at $127 million towards the end of June.

This means that over 89.5 percent of AAVE holders have been facing losses for more than a year. The last time all AAVE investors made a profit was recorded in January 2021.

This started to affect the average balance in each trader’s wallet as the rest of the market remained in a downtrend and at the same time AAVE investors avoided exiting the market. As a result, the average balance fell from $175.3k in February 2021 to just $8.1k as of July 4.

As AAVE shares a very high correlation of 0.89 with Bitcoin, it is difficult to say what investors will prefer, as it offers a rally opportunity as well as making it susceptible to a price drop.

You can follow the current price action here.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

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