Aave price rallies 12% amid surging whale activity

The price of Aave has seen an increase of over 12% following increased whale activity and an overall bounce in the global cryptocurrency market.

At press time, Aave (AAVE) has become the 47th largest cryptocurrency by market cap, exceeding $1.89 trillion, with its price up 12.4% on August 20 to trade at $126.9, according to data from crypto.news.

AAVE 24-hour price chart – August 20 | Source: crypto.news

Despite this rise, the cryptocurrency has fallen 80.8 percent since its all-time high of $661.6, while its daily trading volume remains at $392 million.

Meanwhile, blockchain analytics firm Lookonchain revealed that whales significantly increased their holdings in Aave in just a three-hour window. According to its data, these large-scale investors purchased 31,407 AAVE worth around $3.92 million in total.

In one example, whale address 0x3737 spent 813 ETH, or $2.18 million, and purchased 17,690 AAVE at a price of $123 per token. Another whale, identified by address 0x1D15, withdrew 13,717 AAVE from Binance, worth around $1.73 million. As of press time, this whale holds a total of 19,373 AAVE, worth $2.45 million.

Whale activity around Aave increases as DeFi shows signs of maturation

The recent surge in whale activity coincides with a broader recovery in the DeFi sector, according to Edward Wilson, Chief Marketing Officer at Nansen Analytics.

Speaking to crypto.news, Wilson outlined a significant shift in the crypto market away from the frenzy of speculative meme coins and toward more fundamentally strong DeFi projects. Wilson suggests that this trend represents a maturation within the market that favors sustainable growth over temporary hype.

Additionally, Nansen Analytics found that there has been a significant increase of approximately $5 million in Aave shares by experienced investors since the beginning of August, and this increased confidence is supported by technical patterns in Aave’s price chart.

“The developing Adam and Eve bottom pattern suggests strong potential for further bullish momentum, consistent with the market’s refocus on strong fundamentals.”

Edward Wilson

Earlier in July, Aave’s price saw an 8% increase after founder Marc Zeller proposed implementing a token buyback program, further fueling optimism about the token’s future.