Whales in the cryptocurrency market are showing a strong interest in accumulating large amounts of Maker (MKR) and Aave (AAVE), two major decentralized finance (DeFi) tokens. This trend comes at a time when the crypto market is experiencing a cooling-off period following the approval of 11 spot Bitcoin ETFs by the SEC. According to ScopeScan data, Anchorage Digital recently purchased a substantial amount of MKR worth $24.7 million from Coinbase, while two other whales, identified as “0xbb5f” and “0x4a7”, acquired significant quantities of AAVE and MKR from Binance.
These whale purchases indicate a high level of confidence in the long-term potential of MKR and AAVE, which are leading decentralized lending and borrowing protocols in the DeFi space. Maker serves as the governance token for MakerDAO, managing the DAI decentralized stablecoin, while Aave is the governance token for Aave, a prominent decentralized lending platform. As per DeFiLlama data, Maker and Aave currently have total value locked (TVL) of over $8.4 billion and $7.3 billion respectively, showcasing their significant presence in the DeFi ecosystem.
The accumulation of MKR and AAVE by whales is happening amidst a recovery in the DeFi sector after a contraction in 2022. With the industry managing over $56 billion and Ethereum hosting various liquid DeFi protocols, the outlook for Maker and Aave appears positive. Both tokens have seen impressive performances in the past, with MKR rising over 200% and AAVE appreciating by more than 150% last year. Factors such as the launch of Spark in Maker and the introduction of the GHO stablecoin and the Lens protocol by Aave have contributed to their strong growth.
Despite their current position in the daily chart, MKR and AAVE show signs of upward potential. MKR is currently within a bullish breakout formation with a critical support level around $1,560. If the token surpasses $2,300, it could trigger significant demand and potentially lead to new highs in 2024. The accumulation by whales indicates a positive sentiment towards the future performance of these tokens, which could further drive their rally in the recovering DeFi market.
In conclusion, the interest shown by whales in accumulating MKR and AAVE suggests a positive outlook for these DeFi tokens in 2024. With strong fundamentals and growing total value locked, Maker and Aave are well-positioned to witness further growth and potentially reach new highs. Investors are keeping a close eye on these tokens as they navigate the evolving landscape of decentralized finance and the broader cryptocurrency market.
