June 7, 2023

The number of “whale” addresses in AAVE has recently increased. Whale addresses are digital currency addresses that store 1 million or more of a particular coin. AAVE is currently riding a wave of whale-like popularity.

AAVE is currently riding a wave of whale-like popularity. According to Santiment, 55% of AAVE tokens are held by addresses ranging from 1,000 to 1,000,000 tokens. That’s a big jump from the 48% that investors saw in the first half of June.

The increase in whale addresses may be attributed to the new AAVE feature. AAVE recently tweeted about the company’s recent achievements in the current DeFi industry.

We expect the number of services using the AAVE ecosystem to increase over the next few years as funding has been provided to over 26 different beneficiaries.

Thanks to the company’s partnership with Flashstake, staking tokens in the ecosystem can now generate instant returns.

AAVE TVL is also increasing

Using governance tokens, users can lend and borrow cryptocurrencies and real-world assets (RWA) directly to each other, reducing the need for trusted third parties. Investors earn interest when they borrow money and lose interest when they borrow money.

The system’s TVL has increased from $1.09 billion on September 14 to $1.17 billion since the tweet describing the current changes in the ecosystem.

When the TVL figure rises, so does the trading volume. According to public data, the 24-hour trading volume of the token increased from $74,494,475 on September 18 to $145,288,857 on September 20. This represents a huge increase of nearly 49%.

As of this writing, the figure is down 19.5% to $116,733,735. While the long-term outlook for AAVE may be positive, the short-term outlook is not.

While the progress is significant, the coin is still subject to market conditions. The coin has lost 14% of its gains on September 17.

Positive Development Helps Token Recovery

The decline in prices can be attributed to deteriorating macroeconomic conditions in the first half of September. Due to the climate of fear in the market, the crypto winter will last until the end of the year before things get better.

Recent economic developments will affect the broader financial market, especially the cryptocurrency market. But recent developments could help AAVE make up for its losses.

Recently, Nasdaq announced its entry into the cryptocurrency market. Their reasoning is the increased interest in digital assets from institutional investors.

While their approach remains cautious as crypto exists in a legally ambiguous area, it is still a major milestone for the crypto industry.

AAVE has always been part of the cryptocurrency market as a lending platform. As the crypto winter continues, services like AAVE will become integral to surviving in current market conditions.

AAVE total market cap at $1.02 billion on the daily chart | Source: TradingView.com

Featured image from The Coin Republic, Chart: TradingView.com

(The analysis represents the author's personal views and should not be construed as investment advice).

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