AAVE’s price surpassed $300, fueled by a surge in dormant coins re-entering circulation.
Blockchain Capital sent 16,964 AAVE tokens, worth $4.71 Million, to the FalconX platform. These tokens were redirected to two big exchanges: OKX and Binance.
This move marked a strategic shift for Blockchain Capital holding its investments in markets that were more liquid as decentralized finance (DeFi) asset interest grows.
With the growing demand for liquidity on Ethereum’s DeFi platforms, this transfer stood out.
This also showed that Blockchain Capital remained confident in AAVE crypto, an important DeFi player.
Additionally, Blockchain Capital secured 233,256 AAVE tokens from Anchorage Digital. The tokens were bought for $64 Million almost two years ago, at an average price per token of $274.50, the official said.
Large-scale issuance from Tether and movements from Blockchain Capital all suggested that institutions were becoming more attracted towards DeFi assets.
Growing even stronger, the DeFi market now saw Blockchain Capital hold 216,292 AAVE tokens, valued at roughly $64.4 million.
The actions of Blockchain Capital have signaled greater institutional engagement with the DeFi ecosystem.
In order to capitalize on AAVE’s increasing market potential, Blockchain Capital moved large sums of AAVE crypto onto high liquidity platforms.
This activity showed how important Ethereum was for DeFi as it improved the space by congregating all into one stable form of value.
World Liberty Financial Purchases $12 Million in ETH, AAVE, and LINK
World Liberty Financial purchase consisted of 2,631 ETH worth $10 Million. 3,801 per ETH, 3,357 AAVE tokens, and 41,935 LINK, each worth $1 Million.
It was the first time WLF purchased AAVE and LINK, showing its increasingly affirmative opinion of decentralized finance (DeFi) assets.
The fund spent $30 Million in USDC to purchase 8,105 ETH at an average price of $3,701 ETH.
These purchases showed that the fund was increasingly comfortable with the value of these digital assets and growing its DeFi portfolio.
Assets now total $63.95 Million in World Liberty Financial’s portfolio. 14.573K ETH, 3.058M USDT, 1.357K AAVE, and LINK are included with this, demonstrating a deep involvement with the cryptocurrency space.
Its rise in exposure to Ethereum, AAVE and LINK was indicative of the fund seeing long-term potential in DeFi.
In a sign of the continued institutional adoption of crypto and DeFi products, World Liberty Financial has been steadily purchasing.
AAVE Crypto Surpasses $300, Driven by Surge in Stagnant Coins Circulating
AAVE broke the $300 mark for the first time since November 2021 in a key recognition. The true driver of AAVE’s price was the fact that dormant coins were popping out on the market.
The inflow of previously illiquid tokens indicated that key players of these cryptos were getting more active, boosting the bullish sentiment.
AAVE’s market performance showed a rise in the “Mean Dollar Invested Age,” a measure that tracks the average age of coins held within the same wallet.
The decline implied a continuance of older coins being circulated, possibly by large holders.
Santiment pointed out that AAVE was trading in a more risky environment. AAVE returned 33% over the last 30 days and 109% over the last 365 days.
But large holders not circulating their coins too quickly could lead to short-market retrace, therefore downward price alteration in the short period.
As long as large wallets continue to circulate their holdings, expect the influx of dormant AAVE tokens to keep driving price growth.