DeFi Liquidity Under Pressure: $114.9M USDT Withdrawal Impacts Aave

A significant withdrawal of $114.9 million USDT from Aave has impacted the platform’s liquidity and utilization rates, raising concerns about its stability in decentralized finance (DeFi). The large transaction by cryptocurrency investor known as ‘whale’ 0x540C led to a notable increase in Aave’s USDT utilization rate, surpassing the standard threshold. This event highlights DeFi’s vulnerability to sudden spikes in liquidity and potential risks for users.