The number of “whale” addresses in the 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 whale-like wave of popularity.
AAVE is currently riding a whale-like wave of popularity. 55% of AAVE coins are held by addresses with 1,000 to 1 million tokens, per Santiment. That’s a big jump from the 48% investors saw in the first half of June.
This increase in whale addresses may be attributable to new AAVE features. AAVE recently tweeted about the company’s recent achievements in today’s DeFi industry.
An increase in the number of services using the AAVE ecosystem can be expected in the coming years, as funding has been awarded to over 26 different grantees.
Staking the token on the ecosystem can now generate instant returns thanks to the company’s cooperation with Flashstake.
AAVE TVL also increases
Using the governance token, users can lend and borrow cryptocurrencies and real-world assets (RWA) directly from each other, eliminating the need for a trusted third party. Investors earn interest when they lend money and lose interest when they borrow money.
The system’s TVL rose to $1.17 billion from $1.09 billion on September 14, since tweets were posted outlining current changes in the ecosystem.
When the TVL number increases, the trading volume increases with it. The token’s 24-hour trading volume increased from $74,494,475 on September 18 to $145,288,857 on September 20, according to publicly available data. This represents a massive growth of almost 49%.
At the time of writing, this figure had decreased by 19.5% to $116,733,735. Although the long-term outlook for AAVE may be favorable, the short-term outlook is not promising.
Despite the significant advances, the token is still subject to market conditions. The token has already lost 14% of its September 17 gains.
Positive developments help the token recover
The decline in prices can be attributed to deteriorating macroeconomic conditions in the first half of September. Due to the market dread, the crypto winter will persist until the end of the year before conditions improve.
Recent economic developments will influence the broader financial markets, especially the cryptocurrency market. But recent developments may help AAVE recoup its losses.
Recently, NASDAQ announced its entry into the cryptocurrency market. Their rationale was that institutional investor interest in digital assets has increased.
Despite the fact that their approach remains cautious as crypto exists in a murky legal realm, this is still a milestone in the crypto industry.
AAVE is part of the cryptocurrency market as a lending and borrowing platform. As the crypto winter persists, services such as AAVE will become indispensable to survive 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).