Whales Fuel AAVE Rally as TVL Hits New All-time High

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As a seasoned analyst with over a decade of experience in the crypto market, I’ve witnessed the ebb and flow of countless altcoins. However, the recent surge in AAVE has caught my attention, and not just because it’s a DeFi powerhouse.

As the DeFi sector surges, hitting a market capitalization of $160 billion, I find myself drawn to AAVE as a compelling option among crypto heavyweights. AAVE, a decentralized finance platform specializing in lending and borrowing solutions, currently stands at $246.7 with a 24-hour volatility rate of 5.4%. Boasting a market cap of $3.70 billion and a 24-hour trading volume of $1.18 billion, it’s no wonder why this platform is becoming increasingly popular among crypto whales.

With liquidity pools. AAVE provides flash loans in the crypto market. As the altcoin season arrives, the AAVE token is springing back into action.

Whales Boost On-chain Numbers

For the last two weeks, the market value of the Decentralized Finance protocol has grown by approximately 53%. This surge is fueled by increasing fear of missing out (FOMO) as a result of the pro-cryptocurrency policies advocated by the current Trump administration, contributing to the ongoing bull run.

In recent times, there’s been a surge in optimism towards Decentralized Finance (DeFi), and the AAVE token has reached a market value of approximately $3.622 billion. Over the last month, it has grown by nearly 90%, with its trading volume approaching $1 billion. At this moment, the DeFi token is being traded at around $248, showing a slight dip from the 24-hour high of $252.59.

Over the last day, there’s been a surge in crypto whales’ interest towards the AAVE token, as the number of transactions involving these large investors has reached its peak since March 2022, totaling 587.

The increased whale activity has led to a surge in on-chain transaction amounts, peaking at an impressive $385.9 million. This record-breaking figure marks the highest on-chain transaction volume seen since last October.

As the network’s activity increased significantly, a record-breaking 2,346 distinct addresses became active. This is the highest number of active addresses we’ve seen on the network since the month of June 2023.

As interest and network activity increase, it’s plausible that the upward trend in AAVE will reach unprecedented peaks. At present, its price stands at a 63.88% reduction compared to its all-time high of $670, suggesting significant potential for further bullish growth.

AAVE Investors Turn Green as TVL Crosses $35B

During this current market surge, data from IntotheBlock’s global in-and-out-of-the-money indicator presents some intriguing figures. Specifically, about 86.12% of the AAVE trading volume is found within the “profitable” zone, which equates to approximately $3.33 billion being held by successful investors across a total of 13.78 million AAVE tokens.

However, the out-of-the-money segment holds on to the 4.79% volume. This accounts for 765.62K AAVE tokens worth $185.04 million.

Approximately 9.09% of the total volume resides within the “at-the-money” range, stretching from $223.96 to $259.89. This range encompasses a significant number of 1.45 million AAVE tokens, valued at an impressive $351.62 million.

The surge in AAVE’s price growth is pushing the value locked on the network to unprecedented heights, now standing at a record-breaking $35.539 billion. This figure surpasses the previous high of $33 billion reached during the 2021 market boom.

Summarizing it, the surge in popularity for whales and the expanding Decentralized Finance (DeFi) sector are primary factors contributing to AAVE’s growth spurt. Moreover, the crypto-supportive initiatives under the Trump administration might ignite another spectacular rise in AAVE. Consequently, we may expect a fresh peak in the value of the DeFi token as early as 2025, provided the rally persists.

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2024-12-04 12:18