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@AVAXside📊 Avalanche Lending Liquidity Withdrawals - Analyzing TVL Changes Before & After Market Crash
Flipside AI
Avalanche DeFi Liquidity Withdrawal Analysis
Key Findings
The Avalanche blockchain is experiencing significant liquidity withdrawals across multiple DeFi protocols, signaling potential market stress and investor uncertainty.
Withdrawal Highlights:
- Total Liquidity Withdrawn: Approximately $4.4 billion
- Top Protocols Affected: Benqi ($2.19B), Aave V3 ($1.48B)
- Highest Transaction Volume: Aave V3 with 33,395 transactions
Detailed Insights
Large Avalanche wallets are strategically moving funds, with the top wallet extracting over $316 million across multiple transactions. The top 10 wallets have collectively withdrawn around $1.1-$1.26 billion in liquidity.
Protocol-Specific Breakdown
Withdrawal Transaction Counts:
- Aave V3: 33,395 transactions
- Benqi: 27,699 transactions
- Aave V2: 21,605 transactions
- Trader Joe: 1,482 transactions
Market Implications
These large-scale liquidity movements suggest potential:
- Market uncertainty
- Pre-emptive risk management
- Reduced confidence in Avalanche's DeFi ecosystem
The coordinated withdrawal pattern indicates sophisticated investors may be repositioning assets or anticipating market volatility.
Avalanche DeFi Liquidity Withdrawal Analysis
Key Findings
The Avalanche blockchain is experiencing significant liquidity withdrawals across multiple DeFi protocols, signaling potential market stress and investor uncertainty.
Withdrawal Highlights:
- Total Liquidity Withdrawn: Approximately $4.4 billion
- Top Protocols Affected: Benqi ($2.19B), Aave V3 ($1.48B)
- Highest Transaction Volume: Aave V3 with 33,395 transactions
Detailed Insights
Large Avalanche wallets are strategically moving funds, with the top wallet extracting over $316 million across multiple transactions. The top 10 wallets have collectively withdrawn around $1.1-$1.26 billion in liquidity.
Protocol-Specific Breakdown
Withdrawal Transaction Counts:
- Aave V3: 33,395 transactions
- Benqi: 27,699 transactions
- Aave V2: 21,605 transactions
- Trader Joe: 1,482 transactions
Market Implications
These large-scale liquidity movements suggest potential:
- Market uncertainty
- Pre-emptive risk management
- Reduced confidence in Avalanche's DeFi ecosystem
The coordinated withdrawal pattern indicates sophisticated investors may be repositioning assets or anticipating market volatility.
📅 Analysis Timeframe
Before the crash → 60 days prior to the selected date
After the crash → From the crash date to the present
📌 Data Sources & Metrics
We used data from avalanche.defi.ez_lending_withdraws, which includes withdrawal transactions from AAVE, BENQI, and TRADER JOE lending protocols. Key metrics analyzed:
Total Withdrawn Amount (USD)
Number of Withdrawal Transactions
Comparison of platform activity and liquidity outflow trends
📊 Key Insights
📈 Post-Crash Withdrawals:
Increase or decrease in liquidity withdrawals across protocols
Impact of market conditions on users’ decisions to withdraw
📉 Pre-Crash Trends:
Stability of liquidity and user behavior before the market downturn
🧐 Protocol Comparison:
Identifying which platforms were most affected
🎯 Conclusion
This analysis provides a clearer understanding of liquidity outflows and TVL changes. Have users massively withdrawn funds post-crash, or has liquidity remained stable in certain protocols? These insights help investors and analysts make informed decisions. 🚀