Big Investors Piling into Aave (AAVE) as DeFi Sector Grows

Crypto investor Arthur Cheong recently highlighted a trend among major investors accumulating a prominent altcoin.

Cheong noted that wealthy wallets are increasingly buying Aave’s (AAVE) token. This follows a significant drop in AAVE’s availability on cryptocurrency exchanges.

Cheong pointed out that AAVE’s supply on exchanges has diminished by approximately $18.4 million over the past month, with substantial purchases observed from notable investors.

He suggests that the signs are aligning for a new phase of growth in decentralized finance (DeFi), referencing a recent development involving BitGo’s decision to shift its Wrapped Bitcoin (WBTC) operations to a multi-jurisdictional custody system.

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Cheong believes that BitGo’s move is drawing more participants into the DeFi space. Coinbase has hinted at launching its own version of Wrapped Bitcoin, called “cbBTC.”

Cheong remarked, “BitGo’s strategic error with Wrapped Bitcoin has actually spurred increased interest from major players in the DeFi sector. We could see at least $20 billion in total value locked (TVL) from various wrapped or bridged Bitcoin projects entering DeFi in the next 6-12 months, including cbBTC from Coinbase and tBTC from Threshold Network. Given Coinbase’s extensive reach, I wouldn’t bet against it.”

Alexander Stefanov