Aave’s price plunged into a bear market after falling more than 21% from its highest point last week, despite growth in its recently launched real-world asset tokenization platform.
Aave (AAVE) dropped to $300, its lowest level since Aug. 22, mirroring the performance of Bitcoin and most altcoins.
Horizon assets are growing
Aave, the largest player in the decentralized finance industry, is performing well as its total value locked hovers near a record high. Its total value locked on the network has risen 22% in the last 30 days to $40 billion, while seven-day fees rose to $21.2 million.
This growth is partly because of its recently launched Horizon product, which is built to bridge traditional and decentralized finance.
Horizon enables institutional investors to borrow stablecoins using tokenized RWA assets as collateral. Horizon makes it easier for qualified institutions to deposit these tokenized assets to access loans through stablecoins.
Data shows that the network is off to a good start as the total available funds have jumped to $50 million. Users have already borrowed tokens worth $6.2 million, a trajectory that may continue in the coming months.
Ripple USD (RLUSD) is the most supplied token with over $26.3 million in assets, followed by USD Coin with $8 million. Other top players in the network are the Janus Henderson Anemoy Treasury Fund with over $2.08 million in assets.
AAVE price technical analysis
The daily chart shows that the Aave price has slumped from a high of $385.32 last week to $300. This decline is likely occurring as investors sell the Horizon launch news.
Aave has moved to the middle of the ascending channel, where it has found support at the 50-day moving average. Therefore, the token will likely continue falling as sellers target the lower side of the channel at $280.
The token will then bounce back as the bullish trend resumes. A break below the lower side of the channel will indicate further downside, potentially to support at $245, its lowest point on Aug. 30.
