AAVE Drops 10% as Crypto Market Reacts to Trump’s Executive Order

The crypto satellite is successful a slump aft President Donald Trump enactment his signature connected an enforcement bid connected March 7, launching a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” AAVE, the token down the Aave lending platform, has fallen to $209.41, down a crisp 10.16% successful conscionable 24 hours. 

Source: CoinMarketCap

The full market’s feeling the symptom too—Bitcoin’s disconnected by 4%, Ethereum’s down 5%, and the full crypto marketplace headdress has shrunk to $2.9 trillion, a 3.17% dip.

The enforcement order, rolled retired by David Sacks, Trump’s AI and crypto constituent antheral astatine the White House, creates a government-controlled heap of integer currencies, built from coins grabbed successful transgression busts. Sacks dubbed it a “digital Fort Knox,” playing up Bitcoin’s representation arsenic the golden of the crypto world. 

Some folks deliberation this could mean crypto’s going legit with the large players, but close now, investors aren’t buying it—they’re selling instead, and prices are crashing.

Even with today’s tumble, AAVE’s had a beauteous bully tally this week, up 13.42% overall. That’s acknowledgment to a slick upgrade conscionable 2 days earlier the marketplace nosedived. Aave linked up with Sonic, a speedy blockchain that utilized to spell by Fantom. The concern clicked fast—Sonic racked up $33 cardinal successful locked worth successful a azygous day. 

Now it’s moving with the likes of Ethereum, Optimism, Arbitrum, and Polygon successful Aave’s network, giving it immoderate superior DeFi muscle.

Things look shaky for AAVE successful the abbreviated word aft Trump’s curveball threw the marketplace into chaos. But that caller tie-in with Sonic has made it a tougher subordinate successful the DeFi game. People with wealth connected the enactment are watching intimately to spot however the temper shifts and what the regulators mightiness bash adjacent arsenic crypto deals with different governmental storm.  

Will AAVE ascent backmost up erstwhile the panic fades? Tough to call. For now, the crypto crowd’s stuck successful limbo, waiting to spot what Trump’s latest determination truly means down the road.

Also Read: Crypto Market Sees $390M Liquidations After Trump Order