Looking at AAVE, it seems that the DeFi token is in a better position right now, given the 15% rally that has taken place over the past 24 hours. However, the bigger picture is much less exciting.
AAVE Whales HODL
Usually, when a token or an altcoin is strongly associated with whales, it is considered a risky investment due to the fear of unprecedented dumplings.
However, certain tokens like Polygon (MATIC), Chainlink (LINK) and in this case also AAVE have surprisingly stable whales. This is why these tokens have become one of the best cryptocurrencies in the world.
Notably, AAVE has the dominance of 13 whales, which together account for 66% of the 16 million AAVE stock. While they have their hands on most of the offerings, most of this offering has been untouched for a while.
Addresses and balance divided by their duration show us that AAVE witnessed the rise of HODLers (long-term holders) in October. These investors have been holding onto their AAVE for over a year now. In addition, these HODLers currently account for 32.78% (34.2k) of all addresses.
These 34.2k addresses total about 3.87 million AAVE, which has been in the wallets of these investors for over a year now. But the question is can this last?
HODL all the way
In addition to the 3.87 million AAVE that has been held for more than 1 year, there is another 10.94 million AAVE between a month and a year.
ITB data shows that of the 103k total addresses with AAVE, 82.8% of them are currently lost. While it may seem that current market conditions are responsible for this, in reality this has been a developmental situation, not overnight.
At the beginning of May 2021, the investor concentration in profits started to fall from 94% and has not stopped yet.
This means that the AAVE holders who have held the token for a month and over a year have seen AAVE peak at $629. However, they are currently witnessing the altcoin’s struggle to break through $140.
The only reason most of these HODLers are still HODLing is that the price drop still hasn’t negated the 2021 surge. AAVE is still 66.38% above its January 2021 level and as long as it stays that way, these investors will have no intention of exiting.
It is interesting to note that a push on the part of investors could even help AAVE recover, provided broader market indications turn bullish.
This post With the predominance of 13 whales, is AAVE a risky investment right now?
was published first on https://ambcrypto.com/with-the-domination-of-13-whales-is-aave-a-risky-investment-right-now/