AAVE still earns $100M+ annually despite $60B DeFi outflows; $190 resistance key
AAVE continues to generate strong revenue even as the DeFi sector faces heavy outflows. DeFiLlama reports nearly $60 billion withdrawn across protocols, taking total TVL down to about $120 billion; Aave experienced roughly $10 billion of those outflows. Despite this, AAVE’s protocol revenue exceeds $100 million annually, with weekly revenues around $3 million and cumulative fees of about $740 million — its highest five-year revenue figure. Price action, however, has weakened: AAVE is down over 30% quarterly and nearly 40% year-on-year, making it one of the weaker major DeFi tokens. Technical resistance sits near $190 on the daily chart; a break above that level is viewed as necessary to flip momentum. The article highlights a divergence between resilient fundamentals (steady fee income and platform activity) and soft market sentiment. If market risk appetite returns and broader DeFi stabilizes, AAVE’s solid revenue profile could support a swift rebound, but near-term price action remains hostage to market FUD and resistance at $190.
Neutral
The news shows a mixed signal: strong on-chain fundamentals (AAVE’s >$100M annual revenue, $740M total fees, steady weekly income) but weak price performance (down ~30% quarterly, ~40% yearly) amid large DeFi outflows (~$60B) and $10B from Aave. For traders this suggests limited immediate upside — price must clear the $190 resistance to shift momentum — but also lower downside risk relative to weaker protocols because steady fee income supports protocol utility and potential buy-side interest if market sentiment improves. Short-term impact: neutral-to-bearish as selling pressure and market FUD dominate and technical resistance remains. Volatility may increase around macro or DeFi-stabilizing events. Long-term impact: cautiously bullish for AAVE relative to peers because persistent revenue and high fee accruals underpin fundamental value; if TVL stabilizes and risk appetite returns, AAVE could outperform. Comparable past events: during prior DeFi drawdowns, protocols with sustained fee income (e.g., Uniswap during certain corrections) recovered quicker than those lacking on-chain revenue. Traders should watch TVL trends, weekly revenue, and the $190 technical level; risk management remains essential given macro-driven liquidity risk.