A prominent cryptocurrency investor has significantly increased their holdings of AAVE tokens despite ongoing market uncertainties. After the price of AAVE dropped to approximately $101 in October, the investor had paused acquisitions but resumed accumulating AAVE through leveraged loans in late November. Over the past two weeks, they have invested around $14 million in USDC, acquiring approximately 80,900 AAVE tokens at an average price of about $173 each. Their total AAVE holdings have now reached 333,000 tokens, with a current market value of roughly $62.59 million. The average cost per token stands at $167, while the expected liquidation price is set near $117.7. AAVE is a decentralized finance protocol that facilitates borrowing and lending, and its market significance continues to grow. The actions of such major investors amid crypto market fluctuations and leveraged trading trends serve as important indicators for other market participants. Increased purchases of tokens like AAVE may reflect confidence in the asset’s future potential, though investments based on leverage carry heightened risks, especially the possibility of liquidation during sudden price drops. Despite market uncertainties, this substantial investment highlights ongoing interest and trust in the sector, potentially contributing to greater stability or appreciation in the value of AAVE and other DeFi tokens going forward.
Source: binance
