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AAVE Hits Yearly Low Despite Major V4 Upgrade Rollout

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The price of AAVE has dropped to a 52-week low, falling below $95 even as Aave rolled out its long-awaited V4 upgrade this week. 

The decline extends a broader downtrend, with the token losing over a third of its value in the past year.

AAVE Price Chart Over the Past Year. Source: CoinGecko

The timing stands out. Aave V4 is one of the protocol’s biggest upgrades to date. In simple terms, it turns Aave from a collection of separate lending pools into one large shared liquidity system

That means users borrow from a bigger pool, get better rates, and use capital more efficiently. It also introduces smarter pricing, where safer collateral gets cheaper loans and riskier assets cost more to borrow

The system is also easier to expand, allowing new products and markets to plug in faster.

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However, the market has not responded. The drop suggests that fundamentals alone are not driving price action in crypto right now. 

Traders are still reacting more to macro conditions, liquidity, and broader sentiment than to protocol upgrades.

In reality, V4’s impact is likely to play out slowly. It improves Aave’s utility, makes the platform more competitive, and strengthens its position as core DeFi infrastructure. 

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But that does not guarantee immediate demand for the token itself.

The disconnect is clear. Aave’s network is becoming more useful and advanced, while its token continues to trade like a macro-sensitive asset rather than a direct reflection of that progress.

The post AAVE Hits Yearly Low Despite Major V4 Upgrade Rollout appeared first on BeInCrypto.

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Crypto World

Stablecoins Dominate Crypto Trading as Retail Activity Drops: CEX.io

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Stablecoins Dominate Crypto Trading as Retail Activity Drops: CEX.io

Stablecoins were a rare bright spot in an otherwise subdued crypto market in the first quarter, with supply growth and transaction activity pointing to sustained demand even as broader market conditions weakened.

Total stablecoin supply increased by roughly $8 billion to a record $315 billion in Q1, according to data from CEX.IO. Although this marked the slowest pace of expansion since Q4 of 2023, it still represented growth during a period when the wider crypto market contracted.

The data suggests investors rotated into stablecoins as a defensive strategy, boosting their share of overall market activity. Stablecoins accounted for 75% of total crypto trading volume during the quarter — the highest level on record.

Stablecoins’ share of total digital asset trading volume exceeded its 2022 peak. Source: CEX.io

At the same time, total stablecoin transaction volume topped $28 trillion, underscoring their growing role as the primary liquidity layer of the digital asset market. The figure extends a multi-year surge in activity, with stablecoin volumes in recent years exceeding those of major payment networks like Visa and Mastercard combined.

However, data on underlying activity painted a more nuanced picture.

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Retail-sized transfers — typically associated with individual users — declined by 16% in the first quarter, the steepest drop on record. In contrast, automated activity surged, with bots accounting for approximately 76% of all stablecoin transaction volume.

The shift toward bot-driven flows suggests that a growing share of stablecoin usage is tied to algorithmic trading, arbitrage and liquidity provisioning, rather than retail demand. While elevated automation can reflect more sophisticated or institutional participation, it may also signal weaker organic demand during bearish market conditions. 

Related: Circle shares surge as Bernstein sees upside from stablecoin adoption

Divergence between major stablecoin issuers

One of the CEX.io report’s key takeaways was a widening divergence between major stablecoin issuers. The supply of Circle’s USDC (USDC) grew by roughly $2 billion in the first quarter, while Tether’s USDt (USDT) declined by about $3 billion, marking the first notable split between the two since Q2 of 2022 amid the bear market.

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The trend aligns with earlier Cointelegraph reporting, which highlighted a surge in USDC transfer activity in February, pointing to increased usage across trading and onchain transactions.

USDC is now more widely used for “financial operations,” which include trading and onchain transactions. Source: CEX.io

Beyond USDC, much of the growth in stablecoin issuance was driven by yield-bearing products — a segment that has drawn increasing scrutiny in the US. Ongoing discussions around a crypto market structure bill in Congress have placed yield at the center of debate, with traditional banks pushing back against stablecoins that offer interest-like returns.

The market for yield-bearing stablecoins is currently valued at around $3.7 billion, with daily trading volumes exceeding $100 million, according to data from CoinGecko.

Related: Crypto Biz: Stablecoin jitters meet institutional momentum