As the market attempts to recover from the recent crash that sent the majority of cryptocurrencies to crucial support zones earlier this week, Aave is witnessing a notable increase in whale activity.
Lookonchain revealed information on July 31 that showed whales have been aggressively accumulating AAVE during the previous two days. Whales withdrew over 58,848 AAVE, valued at $6.47 million, from exchanges at this time, the report indicates. The whale address 0x9af4 once took out 11,185 AAVE, which is equivalent to $1.23 million, from Binance. In the meantime, tokens valued at approximately $2.38 million were transferred from the exchange to another address, which deposited 21,619 AAVE into Aave.
These withdrawals come after the whale address 0xd7c5 previously sent 26,044 AAVE, or more than $2.83 million, off Binance. Due to pressure from these whales on the buy side, the price of AAVE increased by over 7% during the last day. After rising by more than 18% over the previous week, the DeFi token is currently trading at over $115. After Aave founder Marc Zeller revealed a fee flip plan intended to implement a buyback program for AAVE tokens, the price of AAVE recently surged by more than 8%.
Aave v3.1 launches
Approximately $22 billion is the total value that is now locked in the Aave protocol. Around $19.9 billion is on Aave V3, according to DeFiLlama, while the V2 chain still has roughly $1.9 billion in TVL and V1 has roughly $14.6 million. Earlier in the day, Aave Labs declared that Aave V3.1 was now live on all networks where Aave V3 instances were currently running. The V3.1 version includes improvements aimed at enhancing the overall security of the DeFi protocol. The v3.1 enhancements, which also feature improved network usability and operational efficiency, were accepted by the Aave DAO governance.
Aave also adds Lido trading, market value explodes
The overall crypto market trend was defied by a spike in the value of Aave (AAVE) tokens, as the protocol is firmly establishing itself in DeFi. After including Lido in its V3 products, AAVE continued to make money. Lido (LDO), the leading Ethereum staking system, increased its clout. Lido has recently expanded its collaboration with Aave, a significant provider of decentralized liquidity. In the first two days following its activation, the Aave protocol's new V3 market for LDO tokens brought in over $200 million in revenue. Anyone can participate in the fully decentralized Aave V3 market as a provider, borrower, or liquidator. LDO holders would be able to profit from stETH as lenders in the new V3 market, and borrowers would be able to access the asset upon the posting of collateral.
Lido has experience working with Aave vaults and has amassed a sizable amount of ETH liquidity. The first isolated product with customized liquidity and interest rate settings is the recently introduced Lido V3 market. Aave provided a V3 market that was specifically designed to meet Lido's needs and its wrapped ETH tokens. The vaults will have easy access to both stETH and wstETH, enabling collateral and borrowing rate fine-tuning. In order to get unlocked ETH tokens for further DeFi tasks, holders of wstETH will be able to submit the asset as collateral. Aave might eventually allow users to borrow other tokens against wstETH.