AAVE's price dropped nearly 10% by January 25th, extending its pullback toward the mid-$150s. Despite the decline, selling pressure remained measured, with RSI neutral and MACD showing a weakening bearish trend. Open Interest held steady around $130 million, and Funding Rates stayed positive, indicating traders are not rushing to exit and long positions still dominate. The network is approaching a major milestone of $1 trillion in cumulative loans issued, reflecting frequent liquidity reuse through features like flash loans and multi-chain expansion rather than simple capital inflows. This demonstrates strong on-chain credit demand, reaching volumes comparable to large U.S. banks.

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AAVE drops 10% – Assessing if $1 trillion in loans can spark rebound

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