Golden Finance reports that there is another major move in the cryptocurrency market. According to the data from Emun Monitoring, today HTX extracted as many as 600 million USDT from the well-known decentralized lending protocol Aave. This operation instantly caused a stir on the Aave platform, causing the USDT deposit interest rate within the platform to soar like a rocket, once reaching 19.5%.
In fact, this is not the first time that HTX has conducted such large-scale withdrawal operations on the Aave platform. Looking back to June 5th, HTX had already carried out a large-scale fund withdrawal operation, at which time it withdrew 570 million USDT from Aave. That operation triggered a sharp increase in the USDT interest rate on the Aave platform, with the deposit rate once soaring to 30%. This exceptionally high rate quickly attracted a large amount of arbitrage funds to pour in. Surprisingly, HTX later deposited this huge sum of money back to Aave without any change.
HTX’s large-scale withdrawal this time has once again caused a huge impact on the USDT liquidity and interest rate of the Aave platform. When a large amount of USDT was withdrawn, the quantity of USDT available for lending within the platform decreased significantly. Under the influence of the market supply and demand relationship, the deposit interest rate soared instantly. High interest rates usually trigger a series of chain reactions in the market. On the one hand, it attracts investors holding USDT to deposit their funds in Aave to obtain high interest. On the other hand, for borrowers, excessively high borrowing costs will prompt them to repay the loan as soon as possible to avoid high interest expenses.
As market participants adjust their capital operations based on interest rate changes, the USDT interest rate on the Aave platform may gradually return to a relatively normal level in the future. However, at the current stage, HTX’s frequent large-scale capital transfers undoubtedly bring significant instability to the USDT market on the Aave platform. All market participants are also full of speculation about HTX’s subsequent capital movements and the intentions behind this move.
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