Several centralized trading platforms have shut down operations amid massive market sell-offs.
The cryptocurrency market has reacted to the global sell-off, liquidating more than $1.000 billion in the past few days, according to data from the Parsec Finance platform. Amid all the stress in the market, several centralized trading platforms, both traditional and crypto, such as Fidelity, Vanguard and Robinhood, have seen their operations affected.
Several users have reported the closure of these trading platforms as the markets emit negative vibrations. Black monday occurred in 1987, when what is still considered the largest fall in the stock markets in the world was recorded.
However, decentralized exchanges in the DeFi ecosystem have been operating successfully amidst this situation.
Aave operates successfully amid massive cryptocurrency liquidations
Stani Kulechov, founder and CEO of Aave Protocol, highlighted on X that his decentralized lending protocol has withstood stress in 14 markets, operating with complete success. In fact, this DeFi protocol has recorded profits of more than $6 million from processing market settlement transactions.
Kulechev said that Aave is securing $21.000 billion worth of its smart contracts and has been rewarded in the past few hours for keeping markets secure.
Amid the situation, cryptocurrency users have shown their support for the DeFi protocol, highlighting the growth of the decentralized finance ecosystem and the evolution achieved by its protocols to maintain security and stability. X user @crypto_condom highlighted the gains recorded by Aave in the last 24 hours, pointing out the importance of the fundamentals of the crypto ecosystem, as well as the commitment of its developers to continue building.
Source: TokenLogic
Stablecoins maintain their stability
On the other hand, stablecoins are also holding up against all the current market stress. According to data from CoinMarketCaop, trading volumes for USDT and USDC, the top two stablecoins by market cap, have risen by 250% and 320% respectively in the past 24 hours, reflecting the massive demand for these digital assets.
DAI, the first decentralized stablecoin and the third most capitalized stablecoin in the crypto market, has also seen its demand grow exponentially. At the time of writing, DAI has a trading volume of over $630 million USD, which is a significant growth of 600% compared to the trading volume recorded on August 4.
Likewise, Aave's overcollateralized stablecoin GHO is also showing its full potential, maintaining its stability in the market.
On his X account, Kulechov wrote that GHO was successfully overcoming market pressure and its first test of fire.
GHO was launched last year as a new stablecoin pegged to the US dollar and backed by a diverse set of crypto assets, which was created to strengthen Aave’s decentralized ecosystem, drive its expansion and growth, and provide new utilities to its user community.
As recently reported, the current downturn in global and cryptocurrency markets is driven by economic uncertainty and recession fears in the United States, and the aggressive interest rate hike announced by the Bank of Japan last week. Also, geopolitical tensions between Iran and Israel are accentuating panic and instability in the global market.
