DeFi: Whale Buys $13 Million AAVE Tokens, Price Rallies 35%

Lavina Daryanani
Source: Shrimpy Academy

With the collective market consolidating, DeFi token AAVE has managed to register a 35% rally. From its daily low of $56.95, the asset climbed up to $76.9 in just less than 12 hours. Its 35% uptick, however, quickly lost steam and AAVE started retracing. At press time, the token is at $64.63, down 16% from the aforementioned peak.

AAVE/USDT by TradingView

Also Read: Crypto Hacks Drop 70% in Q1 2023: Research

Data from Lookonchain revealed that a particular whale accumulated 182,152 AAVE tokens, approximately worth $13.2 million from exchanges via multiple addresses over the past day. Post all the ‘in’ transactions, the whale’s wallet held a total balance of 399,585 AAVE, worth $29 million.

However, a couple of hours back, the whale started selling tokens. According to on-chain data from Etherscan, the large participant transferred ‘out’ around 38,000 AAVE tokens. These tokens, in retrospect, were sent to exchanges via multiple addresses.

Source: Etherscan

Along with the whale, Tron founder Justin Sun also recently executed a huge AAVE transaction. Lookonchain pointed out that the executive deposited all his 111,910 tokens worth $776k into Huobi a few minutes back. Prior to this, he disposed of millions worth of tokens when the valuation of the asset was 3 digits, back in 2021 and 2022.

Other market participants also seemed to be following suit. Data from ITB revealed that the number of zero balance addresses associated with AAVE has noted a 1016% incline over the past week. This means the addresses transferring out all of their balance are currently on the rise, re-underlining the selling bias.

Source: ITB

Also Read: Is Pepe Coin & Co. Helping DeFi Thrive?

Bottom Line

Fundamentally, not a lot has changed over the weekend. Let’s consider the protocol’s TVL. According to data from DeFiLlama, the value of all the funds locked on Aave has been stagnant at around $5.6 billion, providing no incentive for the bias to flip to bullish.

Parallelly, the broader DeFi market continues to struggle. From an aggregate valuation of over $48.3 billion, the value of all tokens from the sector has dropped down to $47 billion in just the past 24-hours, bringing to light the not-so-optimistic sentiment of market participants. Thus, unless another massive purchase takes place, there’s not much on-chain or fundamental support at this stage that can help AAVE renew its bullish streak.

Also Read: Tether, USD Coin, DeFi Could be Targeted by SEC Next: Berenberg