The native token of Aave AAVE$240.98the largest decentralized crypto lending protocol, was caught in the middle of Friday’s crypto flash crash, with the protocol proving resilient in a historic liquidation cascade.
The token, which was trading around $270 earlier on Friday, fell as much as 64% later in the session to reach $100, its lowest level in 14 months. It then quickly recovered to almost $240, still down 10% in the past 24 hours.
Stani Kulechov, founder of Aave, described Friday’s event as the “biggest stress test” ever for the protocol and its $75 billion credit infrastructure.
The platform allows investors to lend and borrow digital assets without conventional intermediaries, using innovative mechanisms such as flash loans. Despite the extreme volatility, Aave’s performance underlines the evolving maturity and resilience of the DeFi markets.
“The protocol worked flawlessly and automatically liquidated a record $180 million in collateral in just one hour, without any human intervention,” Kulechov said in a Friday X post. “Once again, Aave has proven its resilience.”
Main price action:
- AAVE suffered a dramatic flash crash on Friday, falling 64% from $278.27 to $100.18 before recovering to $240.09.
- The DeFi protocol showed remarkable resilience with a 140% recovery from the native token’s intraday lows, supported by a substantial trading volume of 570,838 units.
- Following the volatility, AAVE entered consolidation territory within a narrow range of $237.71-$242.80 as markets digested the dramatic price action.
Summary of technical indicators
- Price range of $179.12, which represents 64% volatility over the 24-hour period.
- Volume rose to 570,838 units, significantly above the average of 175,000.
- Short-term resistance set at $242.80, capping the recovery during the consolidation phase.
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