Yesterday we had the biggest spike in AAVE liquidations (WETH+WBTC collateral) for the past year.

Yesterday we tried to evaluate possible market moves using crowd sentiment: https://insights.santiment.net/read/monday-crowd-vibes-7128

Now when US Monday trading session is over we might review onchain activity.

With 24h daily active address metric as a proxy.

Long story short, a large number of tokens is now seeing an increasing divergence between price action (up) and active addresses (down).

Example: YFI

This is a warning sign, many divergencies now have to be reset by either a price dump or increase in activity.

What could be good to observe on many tokens for a rally is an opposite divergence, similar to MKR:

Until then, we might probably expect some gravity push down.

Charts layout: https://app.santiment.net/s/jvnjSOT2

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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

Compared to strong June dump, liquidations on Aave are not there yet (yellow line).

No super special 'rekt' charts onchain.

While we see kind of bit worrying pattern on many coins, like ETH...

... where there is divergence with latest growth which often leads to decline, AAVE tries to do something different:

If it will not be enough to keep the price, we dump. But we never know.