• AAVE network witnesses an increase in the number of whales since January 18, as large wallet investors scoop up the DeFi token. 
  • Aave’s total value locked decreased over the past month, dropping from $5.4 billion to $3.7 billion within a 30-day period.
  • The launch of V3 on the Ethereum mainnet and Lemon App deal bullish catalysts for DeFi token. 

Whale count on the Aave network has increased over the past week. Large wallet investors are buying the dip, while the Aave price drops 7% since January 18. While users on the Aave network declined by 25% over the past month, a spike in user adoption could act as a bullish catalyst for the asset. 

Also read: Here's why Ethereum price could witness a bullish breakout after mass profit taking by ETH holders

AAVE’s large-wallet-holder count increases during recent dip 

AAVE supply held by large wallet investors on the network has increased substantially since January 18. Based on data from crypto intelligence tracker Santiment, the percentage supply of AAVE held by top addresses on the network hit a high. 

AAVE Supply held by top addresses

AAVE Supply held by top addresses(as % of total supply AAVE)

 

AAVE price declined 6.3% over the past week and whales continued scooping up the DeFi token throughout the dip. The reason why may be because whales have identified  bullish catalysts in the AAVE ecosystem that could fuel a bullish narrative in the DeFi token. 

Aave V3 launch on the Ethereum mainnet marks positive development in the DeFi ecosystem

While Aave V3’s launch on the Ethereum mainnet in March 2022 did not have an immediate impact on the DeFi token’s price, the development is a positive one for the protocol. The launch of the protocol on Ethereum could drive adoption and usage of the Aave protocol higher. These are potential long-term bullish catalysts for AAVE. 

Total value locked on Aave Protocol

Total value locked on Aave Protocol

The Total Value Locked (TVL) metric in the Aave network, which measures the value of all the crypot funds held in smart contracts on the network and gives an indication of how active users are, declined from $5.4 billion to $3.7 billion. Despite the declining TVL, whale adoption could push AAVE price higher. 

One of the factors negatively influencing Aave’s user adoption is the decline in staking rewards. 

Have staking rewards

Aave staking rewards 

Based on data from Dune Analytics, staking rewards dropped consistently since July 2021. While AAVE lost nearly 25% users over the past month, the DeFi protocol’s recent partnership with Lemon App, a crypto exchange with operations in Argentina and Brazil means 1.7 million users could soon gain access to Aave and supply liquidity to the platform. This is another bullish catalyst for the DeFi protocol. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves.

More Bitcoin News

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic (ETC) saw the headwinds that triggered the massive sell-off of 2022 fade a bit to the background in the first weeks of 2023. That resulted in bulls returning to life after a hibernation of almost five consecutive straight months.

More Ethereum Classic News

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple, the cross-border remittance giant is likely to win its legal battle against US financial regulator, the Securities and Exchange Commission (SEC) according to crypto proponent John Deaton.

More Ripple News

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

Shiba Inu holders who acquired SHIB more than 11 months ago are holding onto their tokens. These holders have refrained from selling their SHIB holdings since December 2021.

More Shiba Inu News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP