AAVE, the native token of decentralized lending platform Aave, has recently attracted the attention of whales as its price surged by over 11% on September 5.
At the time of writing this article, Aave (GHOST) had risen to become the 42nd largest cryptocurrency, up from its 47th position on Aug. 20. The token’s market cap surpassed $1.98 billion, marking an increase of more than 4% over the past 24 hours.
According to price data from crypto.news, AAVE was trading at $132.95, up from its weekly low of $116.13 reached the previous day. The token has seen a significant 60% increase over the past 30 days. Despite this recent rally, AAVE is still 80% below its all-time high of $661.69, reached in May 2021.
The latest surge in AAVE has largely been due to a huge jump in whale activity. On September 5, Lookonchain reported that two whales acquired around $2.2 million worth of AAVE in a span of less than three hours.
Also, the day before, another whale bought The substantial amount of 50,604 AAVE tokens, valued at approximately $6.78 million, with an average price of $134.60 per token. This brought their total holdings to 125,605 AAVE tokens, valued at approximately $16.9 million at current prices.
AAVE has gained more and more Traction between whales in August, probably due to its solid fundamentals. Data Data from DeFiLlama shows that Aave holds over $11 billion in assets and has generated over $281.39 million in fees this year.
Furthermore, data from IntoTheBlock reveals that whales controlling more than 1% of Aave’s circulating supply now hold 59.17% of the total supply. high concentration of big headlines suggests that the price of AAVE is being influenced by whale activity.
Additionally, there has been a marked increase in both inflows and outflows of AAVE among large holders, with inflows up 326% and outflows up 353% over the past week. However, the net flow of AAVE among large holders increased by 61% over the same period, indicating strong buying interest that has helped drive the bullish momentum of AAVE price.
AAVE’s recent price surge also comes after Donald Trump announced his DeFi initiative, World Liberty Financial. This project plans to develop a decentralized financial system using Aave’s non-custodial lending platform and Ethereum’s infrastructure.
Gabriel Shapiro, legal counsel for the initiative, explained that it will function as a “non-custodial light feeder” for Aave, allowing users to make deposits without the need to create a fork. The initiative aims to introduce Trump supporters to the world of decentralized finance, which has reinforced confidence in Aave’s potential for widespread adoption and spurred speculative buying.
Main settlement levels
Currently, key liquidation levels are around $130.2 on the lower end and $139.8 on the upper end, with highly leveraged intraday traders at these points, according to on-chain analytics firm Coinglass.
If market sentiment changes and the price of AAVE falls to $130, nearly $1.78 million in long positions could be liquidated. On the other hand, if sentiment improves and the price rises to $139.8, approximately $5.04 million in short positions could be liquidated.
At press time, data indicated that bears were in control, with the potential to trigger liquidations of long positions at lower levels.
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