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$1.7 Billion Ethereum Exodus Rocks Aave, Borrowing Rates Soar Above 10%
In a stunning turn of events, the cryptocurrency market has been left reeling after a staggering exodus of $1.7 billion worth of Ethereum (ETH) from DeFi giant Aave. The unprecedented withdrawal has sent borrowing rates on the platform skyrocketing past 10%, with analysts warning that this represents a massive increase in the cost of capital for traders and protocols relying on Aave for leverage or liquidity.
The sudden, colossal drain of ETH liquidity had an immediate and brutal impact: borrowing rates for ETH on Aave have exploded beyond 10%. Just days ago, these rates were hovering around a modest 1.4%, but the recent exodus has driven them skyward to unsustainable levels.
In a market where every fraction of a percent matters, this surge represents a significant increase in the cost of capital for traders and protocols relying on Aave for leverage or liquidity.
Source: crypto-economy.com
