The Trump family's actions have caused AAVE to hit a 3-year high, prompting a strong reaction from major investors.
Wallets affiliated with Donald Trump's DeFi platform World Liberty Financial spent 12 million USDC Stablecoins on December 12 to buy several cryptocurrencies. ETH worth $10 million was bought, as well as tokens of the Chainlink decentralized oracle network (LINK) and the Aave protocol (AAVE), $1 million each.
Today, many altcoins showed growth, but AAVE in particular stood out, breaking the $300 mark for the first time in 3 years, attracting attention.
According to data published by Santiment, the significant decline in Mean Dollar Invested Age in projects like AAVE indicates that large holders are re-launching tokens that have been inactive for a long time.
The Trump family's interest in Ethereum, Aave and Chainlink tokens has sparked an increase in whale activity in these three projects.
According to the data, AAVE's active investors have realized a return of 33% over the past month and 109% over the past year. Since the cryptocurrency market is a zero-sum game, these returns above zero are generally seen as a signal of elevated levels of risk.
If large investors continue to put legacy tokens into circulation, the AAVE rally could continue and become even more powerful. However, if large wallet owners start “hitting the brakes,” a pullback in prices is possible. Investors are advised to keep a close eye on market movements.
According to CoinGecko, AAVE has gained 30% in the last 24 hours and is trading above $370.
All news related to Trump or his family affects the crypto market. This should be taken advantage of, because when the US president takes office, his policy towards cryptocurrencies may change from what was originally planned.
However, one should be cautious about such news: LINK and AAVE no longer have any other growth drivers, so it is likely that a correction is about to begin.
