Aave (AAVE) Made $1.7M a Day During the Crisis – Here’s Why Attacks Boost Its Revenue

The AAVE price has been under pressure since the KelpDAO exploit left the protocol with roughly $196 million in bad debt. Total Value Locked dropped by over $8.4 billion in 48 hours. 

But here is the strange part; Aixbt shared that Aave generated $1.7 million in daily fees during the crisis week. That is 63% of Ethereum’s daily revenue. When pools run at 100% utilization, borrowing rates hit maximum levels, which means maximum protocol income. 

The thing earns more money when it is under attack. At $140 million annualized revenue and a $1.4 billion market cap, Aave trades at a 10x P/E ratio. That is cheap for the only lending protocol that has survived a live bank run. The AAVE price is down, but the business model is working.

What the AAVE 4-Hour Chart Shows

We had a look at the AAVE 4 hour chart on Binance. The AAVE price is trading at $94.94, down 0.90% on the session. The 100 period SMA sits at $97.42, acting as resistance. 

The AAVE price has been trading below that level for several days. The support below sits at $94, then $90, then $85. The resistance above sits at $97.50, then $100, then $105. The RSI divergence indicator is at 51.70, neutral. 

The indicator shows some bullish divergences at the bottom, indicating selling pressure may be fading. But the volume is light at 7.33k AAVE. No aggressive buying yet. The AAVE price is consolidating after the crash. The question is whether it can reclaim the 100 SMA and start a recovery.

Read Also: Here’s Where XRP Price Could be Headed This New Week

The Catch – Brain Drain After the Crisis

The protocol survived the exploit through engineering. But Aixbt points to a serious problem. BGD Labs, Chaos Labs, and ACI all departed post crisis. That is the team that built v3, managed risk, and drove 61% of governance actions. 

Aave is now down to one risk manager. The protocol survived the technical attack. The question is whether it survives the brain drain through funding. The AAVE price is one thing. The team behind it is another. Investors are watching both.

Where the AAVE Price Goes From Here

The AAVE price is at $94.94. The 100 SMA at $97.42 is the first level to watch. A break above that would flip the short term structure to neutral. A break above $105 would turn it bullish. The downside support is at $94, then $90, then $85. 

The exploit recovery proposal is still pending. If the frozen ETH is released and used to cover the bad debt, the AAVE price could recover quickly. If the brain drain continues or the recovery effort fails, the AAVE price could drift lower. 

The protocol earns money in a crisis. That is a feature, not a bug. But the team behind it is leaving. The AAVE price is caught in the middle. The next few weeks will tell if Aave survives the brain drain or becomes a cautionary tale.

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The post Aave (AAVE) Made $1.7M a Day During the Crisis – Here’s Why Attacks Boost Its Revenue appeared first on CaptainAltcoin.