- AAVE nosedived 20% in 2024 despite 100% increase in the total value of assets locked on the crypto lending platform.
- Whales holding between 1 million and 10 million AAVE have increased their holdings by over 75% in 2024.
- AAVE whales have distributed their holdings at losses in the past three months, per on-chain tracker Santiment.
AAVE, a decentralized crypto lending platform, has noted a massive spike in the total value of assets locked (TVL). Rising TVL is considered indicative of higher relevance among market participants and trust in the platform.
Whales have scooped up AAVE in 2024 during the dip in the DeFi token’s price.
AAVE wiped out nearly 20% of its value year to date.
AAVE doubles locked crypto assets, loses value
The DeFi lending platform has observed an upward trend in its TVL from late 2023 to 2024. In 2024, Aave’s TVL climbed over 100% to $12.464 billion, as seen on DeFiLlama. Aave’s TVL increased consistently as market participants continued to lock assets on its lending platform despite the decline in the native token’s price.
The three largest components of Aave’s TVL in terms of tokens are WSETH, WBTC, and WEETH. The majority of the assets locked are from the Ethereum chain, the second and third largest are Arbitrum and Polygon. The rise in TVL indicates that AAVE has witnessed growing adoption among DeFi traders.
AAVE TVL on DeFiLlama
Additionally, data from crypto intelligence tracker Santiment shows that whales holding between 1 million and 10 million AAVE tokens have increased their holdings of the DeFi token by over 75% in 2024. This is evident from Santiment’s supply distribution metric.
 [12.59.49, 13 Jun, 2024]-638538796522118205.png)
AAVE whale holdings distribution vs. price
Whale transactions valued at $100,000 and higher, $1 million and higher and the Network Realized Profit/Loss (NPL) metrics show that large wallet investors have realized losses on AAVE holdings in April, May and June.
The Santiment chart below shows spikes in whale transactions and realized losses on several occasions in the past three months.
 [13.02.17, 13 Jun, 2024]-638538799063998095.png)
AAVE whale transactions and NPL
AAVE extends losses, down nearly 5% on Thursday
AAVE extended its losses and wiped out nearly 5% of its value on Thursday. In the past seven days, AAVE price dipped nearly 18% on Binance. The DeFi token has noted a spike in its supply on exchanges.
Exchange supply climbed over 4% in June, signaling a rise in selling pressure on AAVE. The DeFi token is at risk of further decline in price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Here are the best and worst-performing cryptocurrencies in H1 2024
A recent report by Crypto Koryo on Wednesday revealed meme coins as the top performers among cryptocurrencies so far in 2024, with several altcoins coming in behind. The worst-performing tokens are DeFi and governance tokens.
Ethereum poised to follow Nvidia's steps as Bitwise files updated S-1 draft
Ethereum (ETH) is down 3% on Wednesday following Bitwise filing an updated S-1 draft and a wider market downturn with potential Mt. Gox BTC supply flooding the market.
What to expect from altcoins as ETH ETF approval draws closer
As the crypto market continues consolidating on Wednesday, altcoins show mixed signals ahead of the spot ETH ETF launch. Many have predicted that the alt season may not occur in this cycle following the market lull. However, two key metrics suggest otherwise.
PolitiFi meme coins surge as Biden support lowers
Crypto prediction markets favor Kamala Harris over President Joe Biden as Democratic nominee in upcoming presidential elections. Meme coins based on Vice President Harris rallied amid BODEN token's 30% decline. Other tokens based on possible replacements for Biden experienced similar surges.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.