Aave, the decentralized finance (DeFi) platform, is currently navigating a bearish trend across its various trading timeframes, encountering losses of up to 15% in the past 30 days and struggling to sustain positive momentum over the last 24 hours.
On-chain reports reveal a significant player, a giant whale, has entered the scene with a strategy to sell $AAVE for profits.
This formidable entity withdrew 236,779 $AAVE ($17.62 million) from Binance at $74.42 in both January and October of 2023. Just a few hours ago, they deposited 36,779 $AAVE ($3.11 million) back into Binance.
A giant whale started selling $AAVE for profits.
The whale withdrew 236,779 $AAVE($17.62M) from #Binance at $74.42 in January and October 2023.
And deposited 36,779 $AAVE($3.11M) to #Binance 1 hour ago.
The whale currently holds 200K $AAVE($16.88M), with a profit of $2.37M! pic.twitter.com/yclsvznp5u
— Lookonchain (@lookonchain) February 5, 2024
Despite the prevailing bearish trend, the whale currently holds 200,000 $AAVE ($16.88 million) and has managed to secure a profit of $2.37 million.
More AAVE Considerations Outside Whale Activities
Delving into data provided by IntoTheBlock, it’s revealed that the value of Aave GHO’s high-risk loans reached its pinnacle in January 2024, peaking at $734,000.
The high-risk loans indicator for Aave GHO, as offered by IntoTheBlock, sheds light on loans backed by volatile collateral, specifically those with a 5% liquidation margin.
In January 2024, the value of High Risk Loans on Aave GHO reached a peak of $734k.
The high risk loans indicator on @IntoTheBlock for Aave GHO offers invaluable insights into loans held against volatile collateral, specifically those within a narrow 5% margin of liquidation.… pic.twitter.com/W2YC8s3ON7
— Slim Daddy◻️𓃵 ₿ (@felixreads) February 5, 2024
These high-risk loans are particularly precarious, carrying an elevated risk of liquidation due to potential declines in collateral value or unforeseen surges in the price of the loan asset.
The interplay of the whale’s selling actions and the dynamics of Aave’s high-risk loans adds an element of complexity to the platform’s current market conditions.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: skorzewiak/123RF // Image Effects by Colorcinch
