Smart Money Investors Accumulate AAVE Amid Declining Exchange Supply, Says Arthur Cheong

• Crypto investor Arthur Cheong recently highlighted a significant trend in the altcoin market.
• He pointed out that substantial reductions in exchange-held Aave (AAVE) tokens suggest noteworthy accumulation by “smart money” investors.
• Cheong noted a decrease of approximately $18.4 million in AAVE supply on exchanges over the past month.

AAVE token experiences surge in smart money accumulation as investors anticipate a new phase of DeFi growth.

Substantial AAVE Accumulation by Millionaire Wallets

Arthur Cheong, a prominent crypto investor, revealed that sophisticated investors have been accumulating Aave (AAVE). This trend is evident from the significant reduction in the token’s presence on exchanges. According to Cheong, wallets holding substantial wealth are actively purchasing AAVE, likely anticipating a positive shift in the decentralized finance (DeFi) landscape.

Decline in Exchange-Held AAVE Tokens

Data indicates that in the span of 30 days, the supply of AAVE on crypto exchanges diminished by nearly $18.4 million. Cheong attributes this phenomenon to the strategic acquisitions by affluent investors, who foresee potential growth and benefits in the evolving DeFi sector.

Impacts of BitGo’s Multi-Jurisdictional Custody System

Cheong also commented on BitGo’s recent decision to transition its Wrapped Bitcoin (WBTC) business to a multi-jurisdictional custody system, which has stirred significant interest in the DeFi sector. This move, although controversial, has prompted other major players to explore similar ventures.

Emergence of New Wrapped Bitcoin Solutions

BitGo’s strategic shift has inadvertently paved the way for fresh entries into the DeFi space, with Coinbase indicating potential plans to introduce its version of Wrapped Bitcoin, named “cbBTC.” Additionally, the Threshold Network’s “tBTC” is among the anticipated solutions. Cheong predicts that these developments could result in up to $20 billion in total value locked (TVL) within the DeFi ecosystem over the next 6 to 12 months.

Conclusion

The increase in AAVE accumulation by high-value investors and the introduction of new Wrapped Bitcoin solutions highlight a significant trend in the crypto market. These actions suggest a robust future for DeFi, marked by increased participation and innovation. Investors watching these developments are likely positioning themselves for the next wave of growth within the sector.