{"id":9109,"date":"2022-02-27T02:43:38","date_gmt":"2022-02-27T02:43:38","guid":{"rendered":"https:\/\/egrowonline.com\/?p=9109"},"modified":"2022-02-27T02:43:38","modified_gmt":"2022-02-27T02:43:38","slug":"with-the-domination-of-13-whales-is-aave-a-risky-investment-right-now","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=9109","title":{"rendered":"With the domination of 13 whales, Is AAVE a risky investment right now"},"content":{"rendered":"


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Looking at AAVE<\/a>, it may appear that the DeFi<\/a> token is actually in a better position at the moment, given the 15% rally that occurred in the last 24 hours. However, the bigger picture is way less exciting.<\/span><\/p>\n

AAVE whales HODL<\/strong><\/h3>\n

Usually, when a token or an altcoin is heavily associated with whales, it is considered to be a risky investment owing to the fear of unprecedented dumplings.<\/span><\/p>\n

However, certain tokens such as Polygon<\/a> (MATIC), Chainlink<\/a> (LINK), and in this case, AAVE as well have surprisingly stable whales. This is why these tokens have become one of the top cryptocurrencies in the world.\u00a0<\/span><\/p>\n

AAVE, in particular, has domination of 13 whales, which cumulatively account for 66% of the 16 million AAVE supply. Although they do have a majority of the supply in their hands, most of this supply has been untouched for a while now.<\/span><\/p>\n

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AAVE Whales dominate 66% supply <\/em> | Source: Intotheblock \u2013 AMBCrypto<\/a><\/p>\n<\/div>\n

Addresses and balance divided based on their duration show us that AAVE began witnessing the emergence of HODLers (long-term holders) in October. These investors have been holding on to their AAVE for over a year. Furthermore, at the moment, these HODLers account for 32.78% (34.2k) of all addresses.<\/span><\/p>\n

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AAVE HODLers numbers are rising <\/em> | Source: Intotheblock \u2013 AMBCrypto<\/a><\/p>\n<\/div>\n

These 34.2k addresses in all hold about 3.87 million AAVE, which has been sitting in these investors\u2019 wallets for over a year now. But the question is can this persist?<\/span><\/p>\n

HODL all the way
<\/strong><\/h3>\n

Apart from the 3.87 million AAVE held for 1+ years, another 10.94 million AAVE has been held for anywhere between a month to a year.\u00a0<\/span><\/p>\n

ITB data shows us that of the 103k total addresses holding AAVE, 82.8% of them are in loss right now. Although it may look like the current market conditions might be responsible for this, in reality, this has been a developing situation, not an overnight occurrence.<\/span><\/p>\n

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AAVE investors in loss <\/em> | Source: Intotheblock \u2013 AMBCrypto<\/a><\/p>\n<\/div>\n

Beginning May 2021, the concentration of investors in profit started tumbling from 94% and hasn\u2019t stopped yet.\u00a0<\/span><\/p>\n

This means that the AAVE holders who held the token for a month and more than a year, have witnessed AAVE\u2019s peak at $629. However, they are currently witnessing the altcoin struggle to breach $140.<\/span><\/p>\n

The only reason most of these HODLers are still HODLing is that the price fall still hasn\u2019t invalidated all of 2021\u2019s rise. AAVE is still 66.38% above January 2021 levels, and as long as it remains that way, these investors won\u2019t plan to exit.<\/span><\/p>\n

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AAVE price action <\/em> | Source: TradingView \u2013 AMBCrypto<\/a><\/p>\n<\/div>\n

It is interesting to note that a push from investors\u2019 end might even help AAVE to recover provided the broader market cues turn bullish.<\/span><\/p>\n<\/p><\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Looking at AAVE, it may appear that the DeFi token is actually in a better position at the moment, given the 15% rally that occurred in the last 24 hours. However, the bigger picture is way less exciting. AAVE whales HODL Usually, when a token or an altcoin is heavily associated with whales, it is […]<\/p>\n","protected":false},"author":1,"featured_media":9110,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[42],"tags":[3340,3820,874,2232,1582],"class_list":["post-9109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-altcoins","tag-aave","tag-domination","tag-investment","tag-risky","tag-whales"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/02\/pexels-photo-1004014-1000x600.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/9109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9109"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/9109\/revisions"}],"predecessor-version":[{"id":9111,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/9109\/revisions\/9111"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/9110"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9109"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}