Cryptocurrency investor Arthur Cheong says the “smart money” appears to be accumulating one solid altcoin recently.
Qing told his 172,200 followers on social media platform X that Millionaire Wallet was gobbling up the native token of Aave (AAVE), a decentralized finance (DeFi) lending platform, amid a sharp decline in token supply on cryptocurrency exchanges.
“Over the past 30 days, the total supply of AAVE on exchanges has decreased by approximately $18.4 million.
Even in some smart money wallets, we have seen a significant accumulation of low numbers below 7.”
At the time of writing, AAVE was trading at $112.84.
“We can already see the stars lining up for the next phase of DeFi growth,” Cheong said.
The investor cited BitGo’s recent controversial announcement that it would transition its Wrapped Bitcoin (WBTC) business to a multi-jurisdictional custody system.
According to investors, BitGo’s decision is now tempting more players to enter the DeFi space. Coinbase has since teased its own possible version of Wrapped Bitcoin, dubbed “cbBTC.”
Cheong says,
“The unintended strategic missteps of BitGo and Wrapped BTC (BTC) have actually led to more big companies breathing new life into the space.
We expect to see at least $20 billion in TVL (total locked value) flowing into the DeFi ecosystem over the next 6-12 months through various forms of wrapped/bridged BTC, most notably Coinbase’s cbBTC and Thresold Network’s tBTC.
Coinbase is the largest crypto custodian in the world and has a huge distribution channel to bring BTC into DeFi. I’m not going to short this.”
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Featured image: Shutterstock/Sensvector/Philipp Tur