AAVE Price Breached $300 Wall: is $500 Within Reach by Year End?

AAVE, the native token of the decentralized crypto lending platform, surpassed the $300 mark for the first time since 2021 and is making waves.

After hitting a new 2023 high, the native token of the decentralized crypto lending platform AAVE (CRYPTO: AAVE) soared past the $300 mark for the first time since 2021.

What Happened: According to Santiment data, the upsurge in AAVE price was accompanied by a steep collapse of the “Mean Dollar Invested Age.” This measure indicates the average age of coins being moved on-chain, with younger coins denoting more recent activity.

The sharp decline in Mean Dollar Invested Age suggests that major stakeholders are shifting previously dormant tokens back into circulation. This activity typically signals a bullish trend as it involves large sums of money being moved.

AAVE Price Action: Over the past seven sessions, AAVE price surged over 45% with a volume surge of over 89%. At press time, AAVE price trades at $376.80, noting an intraday rise of over 2.3%. Its market cap reads at $5.66 billion, ranking 28th among the top crypto coins.

On Friday, a tweet from onchain Lens revealed that Blockchain Capital (CRYPTO: CAP) touched its AAVE tokens for the first time in two years. The firm transferred 16,964 AAVE tokens to a FalconX exchange. At the current price, the moved tokens are valued at $5.06 million.

Of the total AAVE holdings, the tokens were acquired at an average price of $82.9 between August 2020 and March 2023 via direct purchase, OTC sales, project wallets, and Anchorage Digital.

After the latest trade, Blockchain Capital now holds 216,292 AAVE tokens, equating to roughly $66 million, making them the largest non-team/CEX holder of AAVE.

This massive inflow following a long period of inactivity could signal renewed whale interest in AAVE, which may propel the altcoin’s price higher.

ETH, AAVE, LINK: World Liberty Financial Adds $12M to Crypto Portfolio

World Liberty Financial purchased 2,631 ETH at an average price of $3,801, totaling $10 million in ETH. Additionally, they bought 3,357 AAVE tokens and 41,935 LINK, each valued at $1 million.

This marks the first time WLF purchased both AAVE and LINK, indicating an increased positive sentiment toward DeFi tokens.

The fund purchased 8,105 ETH at an average cost of $3,701, utilizing $30 million in USDT.

These purchases indicate the fund’s optimism regarding the value of these digital assets and its DeFi holdings.

With these additions, World Liberty Financial's crypto assets are now valued at $63.95 million, including 14.573K ETH, 3.058M USDT, 1.357K AAVE, and LINK.

An increase in exposure to Ethereum, AAVE, and LINK suggests that the fund has strong bullish prospects for the industry in the domain of DeFi.

Indicative of the growing institutional adoption of crypto and DeFi products, World Liberty Financial has been on a stacking spree.

AAVE Price Prediction: Is $500 by Year End Within Sight? On the weekly timeframe, AAVE crypto price registered a breakout and moved higher with the 3rd rising wave structure. Any dips toward the $330-$320 could be an ideal buying opportunity for a corrective 4th phase.

The 5th rising wave was imminent, which could sail the altcoin toward the $430 mark followed by $530 in the short term.

A golden crossover was observed on the daily timeframe which adds weight to the bullish thesis.

In case of retracement below $350, AAVE price may retest the support zones of $320 and $310 over the coming days.

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