Investors Increase AAVE Holdings Despite Price Drop

AAVE, a decentralized lending platform, experienced a noticeable increase in its TVL. This rise in TVL, despite recent events, is seen as a sign of investor confidence in the platform. Whales continued to accumulate AAVE despite recent price drops, although AAVE has experienced a 20% decline in value so far.

AAVE Price Drop

The lending platform AAVE, which holds a significant place in the DeFi space, saw a noticeable decline. However, towards the end of 2023 and into 2024, its TVL experienced a significant increase. According to data provided by DeFiLlama, AAVE’s TVL increased by over 100% in 2024, reaching $12.464 billion.

Investors continued to lock their assets in the lending platform despite the token’s price drop, driven by a sense of security, leading to a noticeable increase in AAVE’s TVL.

The largest impact on AAVE’s TVL came from WSETH, WBTC, and WEETH. Most of the locked assets came from the Ethereum chain, with Arbitrum and Polygon taking second and third places, respectively. The increase in TVL indicates that AAVE’s recognition and adoption are growing day by day.

According to data provided by Santiment, whales holding between 1 million and 10 million AAVE tokens increased their holdings by over 75% in 2024. This was revealed by Santiment’s supply distribution metric.

When examining whale transactions valued over $100,000 and $1 million, the Profit/Loss (NPL) indicators showed that these whales continued to trade at a loss in April, May, and June.

Additionally, the Santiment chart revealed sudden spikes and occasional losses over the past three months.

AAVE’s Current Price

The decline in AAVE deepened, with a 6.64% drop in the last 24 hours. Over the past seven days, AAVE’s price fell by 18%, according to Binance exchange data. Meanwhile, the supply of AAVE on exchanges has clearly increased, currently trading at $83.90.

The supply on exchanges increased by over 4% as of June, highlighting the selling pressure on AAVE. This situation could trigger a larger sell-off in the DeFi token space.