Ethena’s Principal Tokens have surpassed 1 billion USD in collateral, drawing capital from AAVE. Their high yield of 15-25% contrasts with AAVE’s declining borrowing rates, prompting investors to favor Ethena.
AAVE is currently facing bearish sentiment as its price consolidates below the 270 USD level. With decreasing borrowing demand, the future looks uncertain unless AAVE innovates to regain competitiveness in the DeFi market.
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