The borrowing cost of stablecoins such as USDT and USDC on Aave has dropped to around 4%, and market risk aversion sentiment has spread

ChainCatcher news, according to Bloomberg, Bitcoin has been fluctuating between $76,000 and $95,000 since March. The lack of a clear catalyst to break through this range has made it difficult for the market to gain sustained upward momentum. One signal reflecting insufficient market confidence comes from the decentralized lending platform Aave, where data shows that the borrowing costs for stablecoins like USDT and USDC on Aave have dropped to around 4%, indicating that risk-averse sentiment is spreading to the crypto space.

FRNT Financial's Head of Data and Analytics Strahinja Savic explained: "Aave's loan rates are influenced by the utilization rate of deposit assets. As leverage demand and other borrowing trading strategies cool down, the rates naturally decline."