Crypto investor Arthur Cheong says that “smart money” entities appear to be accumulating one well-established altcoin as of late.
Cheong tells his 172,200 followers on the social media platform X that millionaire wallets are gobbling up the native token of the decentralized finance (DeFi) lending platform Aave (AAVE) amid a sharp decrease in the token’s supply on crypto exchanges.
“The total supply of AAVE on exchanges have decreased by ~$18.4 million over the past 30 days
Seeing a decent chunk of low 7 figs accumulation among some smart money wallets as well.”
At time of writing, AAVE is trading for $112.84.
Cheong says that he can “already see the stars lining up for the next phase of DeFi growth.”
The investor references BitGo’s recent controversial announcement to transition its Wrapped Bitcoin (WBTC) business to a multi-jurisdictional custody system.
According to the investor, BitGo’s decision is now enticing more players to enter the DeFi sector. Coinbase has since teased its own possible version of Wrapped Bitcoin, dubbed “cbBTC”.
Says Cheong,
“The unforced strategic mistake of BitGo and Wrapped BTC (BTC) have actually catalyzed more big players to come into this vertical with renewed vigor.
Think we will see at least $20 billion of TVL (total value locked) coming from various forms of wrapped/bridged BTC to DeFi ecosystem in the next 6-12 months, with notable one being cbBTC from Coinbase and tBTC from Thresold Network.
Coinbase being the largest crypto custodian globally have a massive distribution channel to bring BTC to DeFi. Would not short this.”
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Featured Image: Shutterstock/Sensvector/Philipp Tur