The number of “whale” addresses in AAVE has increased recently. Whale addresses are digital currency addresses that store 1 million or more of a particular coin. AAVE is currently riding a wave of popularity like a whale.
AAVE is currently riding a wave of popularity like a whale. A 55 percent AAVE coin addresses with 1,000 to 1 million tokens, per Santiment. That’s a big jump from 48% of investors in the first half of June.
This increase in whale address can be attributed to new AAVE features. AAVE recently tweeted about the company’s recent success in the current DeFi industry.
We can expect the number of services using the AAVE ecosystem to increase in the coming years, as more than 26 different beneficiaries have been funded.
Placing tokens in the ecosystem for company collaboration with FlashStake can now generate immediate returns.
AAVE TVL is increasing as well
Using governance tokens, users can lend and borrow cryptocurrency and real-world assets (RWAs) directly from each other, cutting out the need for a trusted third party. Investors earn interest when they lend money and lose it when they borrow money.
The system’s TVL has grown to $1.17 billion since September 14, up from $1.09 billion, since tweets describing current changes in the ecosystem were published.
As the TVL number increases, the trade volume increases. The token’s 24-hour trading volume rose from $74,494,475 on September 18 to $145,288,857 on September 20, according to publicly available data. This represents a huge increase of about 49 percent.
As of the time of writing, this number has decreased by 19.5 percent to $116,733,735. Although the long-term outlook for AAVE may be favorable, the short-term outlook is not promising.
Despite the significance of the progress, the token is still subject to market conditions. The token has already lost 14 percent of its September 17 gains.
Positive development helps to recover tokens
The decline in prices can be attributed to deteriorating macroeconomic conditions in the first half of September. Due to the climate of market panic, crypto winter will continue until the end of the year before conditions improve.
Recent economic developments will affect the broader financial market, particularly the cryptocurrency market. But recent developments may help reverse the loss of AAVE.
Recently, NASDAQ announced its entry into the cryptocurrency market. Their argument was that institutional investors’ interest in digital assets has increased.
While their approach is still cautious as crypto exists in a legal murky area, this is still a major milestone in the crypto industry.
AAVE is a lending and borrowing platform as part of the cryptocurrency market. As the crypto winter continues, services like AAVE will become essential to survive the 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).
