Aave Price Dives as Retail Demand Fades Amid Growing DeFi Deposits

The Aave (AAVE) price has extended its mild near-term recovery on Tuesday, maintaining a constructive bias above the 50-day Exponential Moving Average (EMA) at $90.80.

The protocol's V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

Despite this growth, retail demand remains weak, with futures Open Interest declining by 6% over the last 24 hours and the funding rate sinking below zero.