DeFi cryptocurrency AAVE has managed to record a 35% surge as the overall market consolidates. The asset increased from its daily low of $56.95 to $76.9 in just under 12 hours. However, its 35% surge shortly fizzled out, and AAVE began retracing. The cryptocurrency is currently trading at $64.63, down 16% from its top.
A specific whale amassed 182,152 AAVE tokens, roughly worth $13.2 million from exchanges via several addresses during the course of the previous day, according to Lookonchain data. After all the “in” transactions, the whale’s wallet contained 399,585 AAVE, or a balance of $29 million.
However, the whale only just now began to sell tokens a few hours ago. Etherscan’s on-chain data shows that the major participant ‘out’ed’ about 38,000 AAVE tokens. In retrospect, different addresses were used to send these tokens to exchanges.
Justin Sun, the founder of Tron, just completed a significant AAVE deal in addition to the whale. The executive just put all 111,910 of his tokens, worth $776k, into Huobi, according to Lookonchain. Prior to this, in 2021 and 2022, when the asset’s valuation was in the triple digits, he sold tokens valued at millions of dollars.
It seems as though other market participants were doing the same. According to ITB data, there have been 1016% more addresses with zero balances associated with AAVE over the past week. This confirms the selling bias by showing an increase in the addresses sending their whole balance out at the moment.
DeFiLlama Says Otherwise
Fundamentally speaking, not much has altered since the weekend. Let’s think about the TVL of the protocol. The value of all the money locked on Aave has remained constant at about $5.6 billion, according to data from DeFiLlama, negating any reason for the bias to change to bullish.
In parallel, the overall DeFi market is still having trouble. The value of all tokens from the industry fell from an aggregate valuation of around $48.3 billion to $47 billion in just the past 24 hours, highlighting the less-than-optimistic mindset of market players. There is so no on-chain or fundamental support at this point that can aid AAVE in continuing its positive trend, barring the completion of another sizable buy.
