Even though the DeFi industry is still firing on all cylinders, it becomes apparent some assets are seeing less action. Both MKR and AAVE note multi-month lows for exchange outflows and sending addresses. Such numbers seemingly confirm the majority of tokens remain put, either for better or worse.
Is MKR Running Out Of Steam?
Over the past year, several decentralized finance platforms have received a lot of attention. Projects such as Maker have risen to the top of the Ethereum DeFi rankings, at least where their Total Value Locked is concerned. With over $5.8 billion in AUM, one would expect there to be a lot of interest in MKR today.
As things happen, the overall interest in native DeFi tokens can go through highs and lows. For MKR, it appears general interest in transacting with this currency is hitting new lows. Glassnode confirms there is a substantial decrease in the number of transfers based on the seven-day moving average. Seeing this project hit a four-month low is somewhat problematic.
Although there are still 53.489 transfers for MKR per day, it is a steep decrease from the peak recorded in early 2021. At that time, it wasn’t uncommon to see over 200 transactions per day. Even a few weeks ago, MKR transfers hit over 125 per day with relative ease. Dropping to levels not seen since October 2010 doesn’t bode well.
Additionally, there is also a major decrease in MKR exchange withdrawals. A new one-month low is in the books, yielding 3,994 withdrawals from exchanges per day. It appears that many traders are getting nervous due to the recent price performance. Keeping MKR on an exchange makes it easier to exit positions, although not all users will try to sell.
AAVE Isn’t Faring Much Better
Despite AAVE hitting an all-time high of nearly $500 a few weeks ago, this DeFi asset is not netting much excitement either. AAVE notes a steep decline in the number of network transfers. With a one-month low of 183.321 transfers in place, it remains unclear why this is happening. It is uncanny how the transfers chart follows the asset’s price chart to a fault.
Furthermore, just like MKR, AAVE has a low for exchange withdrawals. Just 16.661 withdrawals per day is not impressive by any means and brings the network to a one-month low. However, it is likely the figures will keep dropping to hit a two-month low. For a project like AAVE, that is not a good sign either.
Considering how the top two DeFi projects by TVL are noting this negative growth, one has to wonder what the future may hold. Turning the ship around wouldn’t take much effort, but for now, it seems unlikely. Competition in the decentralized finance sector is heating up, and remaining relevant will pose a significant challenge.