AAVE Tanks 15%—But Dip-Buyers Pounce as Tokenized Yield Market Heats Up

DeFi’s yield-hungry vultures are circling. AAVE’s price just nosedived 15%—yet buyers are already loading up, betting the slump won’t last.

Tokenized yield products are booming, and traders see blood in the water. Who needs traditional finance’s measly 5% APY when you can chase triple digits—and occasionally get rekt?

One analyst quipped: ’Crypto investors treat 15% dips like Black Friday sales. Wall Street would need smelling salts.’

While these PT tokens don’t directly affect the price of AAVE, they show growing use and demand for Aave’s DeFi platform, which could help the token’s value in the long run. As more users supply assets to trade these principal tokens, Aave’s TVL increases. As of May 20, Aave accounted for 20% of all TVL in the DeFi sector, according to data shared by the protocol. Growth in TVL can eventually benefit AAVE holders for its role in governance and generally as greater adoption tends to boost network value and investor confidence.

Meanwhile, AAVE price is potentially eyeing a 12%+ move from the current level of $251 as it targets resistance at $283, with the recent dip likely serving as a healthy bull retracement and a higher low within the broader uptrend.

Once $283 immediate resistance is cleared, the next major level to watch is the psychological $300 mark, which also acted as strong support during December rallies, which WOULD represent a nearly 20% increase from the current price.