Whales in the crypto world are showing a strong interest in accumulating Maker (MKR) and Aave (AAVE), two prominent decentralized finance (DeFi) tokens. This trend comes at a time when the broader crypto market is experiencing a cooling-off period after the approval of 11 spot Bitcoin ETFs by the United States Securities and Exchange Commission. Anchorage Digital, a digital asset custodian firm, recently purchased a significant amount of MKR from Coinbase, while other whales like “0xbb5f” and “0x4a7” acquired large quantities of MKR and AAVE from Binance.
These whale purchases indicate a high level of confidence in the long-term potential of MKR and AAVE, which are leading DeFi lending and borrowing protocols. Maker serves as the governance token for MakerDAO, overseeing the DAI decentralized stablecoin, while AAVE is the governance token for Aave, a popular decentralized lending platform. The total value locked (TVL) for Maker and Aave currently stands at over $8.4 billion and $7.3 billion, respectively, according to DeFiLlama data.
Despite the recent contraction in the DeFi sector, with Ethereum hosting various liquid protocols, the industry is gradually recovering. The total value locked in DeFi protocols exceeds $56 billion, with a renewed interest in top DeFi projects like Maker and Aave. Both tokens saw impressive gains in 2023, with MKR rising by over 200% and AAVE appreciating by more than 150%, driven in part by protocol-specific developments and the overall market sentiment.
As whales continue to accumulate MKR and AAVE, there is potential for these tokens to rally and reach new highs in 2024. Currently, both tokens are experiencing a slight dip in performance based on daily charts but remain in an overall uptrend. MKR, for example, is in a bullish breakout formation with a critical support level around $1,560, and a potential surge past $2,300 could fuel further demand and push the token to new highs in the coming year.
Overall, the increased accumulation of MKR and AAVE by whales indicates a positive outlook for these DeFi tokens, signaling growing confidence in their long-term viability and potential for future growth. With the broader DeFi sector showing signs of recovery and renewed interest, Maker and Aave could be poised for a strong rally in 2024, building on their previous successes and fundamental strengths within the decentralized finance space.
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