The cost of borrowing stablecoins such as USDT and USDC on Aave has dropped to 4%, which may indicate that the market's risk-averse sentiment has not subsided
Data shows that the borrowing costs of stablecoins such as USDT and USDC on the decentralized lending platform Aave have dropped to around 4%, indicating a spread of risk-averse sentiment in the crypto field. Strahinja Savic, Director of Data and Analysis at FRNT Financial, explained: "Aave's loan interest rates are affected by the utilization rate of deposit assets. As leverage demand and other borrowing strategies cool down, its interest rates naturally decrease." More worryingly, long-term Bitcoin holders from previous cycles are still holding their positions, waiting for higher exit prices. This "reluctance to sell" behavior creates market selling pressure, exacerbating price volatility vulnerability. Since March, Bitcoin has been oscillating between $76k and $95k USD making it difficult for the market to gain sustained upward momentum.
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