AAVE, the native token of the decentralized crypto lending platform Aave, surpassed $363 after surging by approximately 30% over the past day.

This is the first time since 2021 that the asset has recorded a crucial milestone in a rally powered by a huge wave of coins moving back into circulation.

Major AAVE Stakeholders Circulate Dormant Coins

As highlighted by Santiment in its latest analysis, this surge is coupled with a significant drop in the “Mean Dollar Invested Age,” a key indicator suggesting that major stakeholders are moving previously dormant tokens back into circulation. This influx of active coins plays an important role in driving bullish momentum for AAVE.

Additionally, the on-chain crypto analytic platform noted that active traders have experienced massive returns, with 30-day and 365-day gains of over 96% and 290%, respectively.

However, Santiment warns that the current rally’s sustainability depends on whether large holders continue to circulate older tokens. Should whales decide to halt their activity, a retracement could occur. In such a scenario, AAVE’s bullish phase risks cooling.

Adding another layer of insight, Spot On Chain reported that Blockchain Capital, a prominent early investor in AAVE, deposited a significant amount of the token – 16,964 – to FalconX after two years of inactivity. This stash is worth around $5.06 million.

It is important to note that Blockchain Capital acquired a total of 233,256 AAVE between August 2020 and March 2023, at an average price of $82.9. The venture capital firm still holds a substantial amount – 216,292 AAVE, valued at almost $79 million.

This large deposit, coming after a prolonged period of inactivity, could potentially signal whales re-engaging with AAVE, aligning with Santiment’s observation that the movement of older tokens is essential for sustaining the asset’s bullish trend.

Catalysts Behind AAVE’s Growth

Several key developments are contributing to AAVE’s recent price surge. First, decentralized exchange (DEX) Balancer launched its V3 upgrade which introduces enhanced liquidity optimization, increased trading volume, and advanced tools for developers.

Aave has partnered with Balancer to integrate its permissionless automated market maker technology with the former’s yield market infrastructure, creating 100% boosted pools. This collaboration is expected to bolster AAVE’s liquidity and trading activity, further supporting its price growth.

Additionally, Aave’s upcoming launch on Linea, a zk-rollup network backed by Consensys, is another key factor. With community approval, the platform will leverage Linea’s scalability and reduced transaction fees, allowing it to process more transactions efficiently and at a lower cost, thereby increasing adoption.

Lastly, the recent acquisition of $1 million worth of AAVE by President-elect Donald Trump’s DeFi project, World Liberty Financial, has added to the momentum. The project purchased AAVE tokens at an average price of $297.8, signaling strong institutional confidence in AAVE’s prospects.

The post AAVE Surpasses $360: Bullish Momentum Driven by Influx of Dormant Tokens appeared first on CryptoPotato.

Grayscale Investment announced the launch of two investment vehicles on December 12. Grayscale Lido DAO Trust and Grayscale Optimism Trust will offer investors exposure to the governance tokens of Optimism Protocol (OP) and Lido DAO (LDO).

The leading digital asset management firm announced the launch of Grayscale Lido DAO Trust and Grayscale Optimism Trust in a press statement on Thursday. The firm said the latest investment vehicles would help expand the Ethereum ecosystem. 

Grayscale announces the launch of two investment products for accredited investors

Grayscale highlighted that Layer 2 Blockchains, such as Optimism, would help reduce congestion on the Ethereum network. The firm noted the reduced congestion would provide users with cheaper transactions while boosting the network’s efficiency. 

The investment entity noted that Grayscale Lido DAO Trust would expose investors to LDO, Lido’s governance token. The firm added that Lido would provide staking solutions to improve Ethereum’s security by making it more accessible. 

We are proud to announce the creation of two new single-asset crypto investment funds, available through private placement: Grayscale Bittensor Trust $TAO and Grayscale Sui Trust $SUI.

Available to eligible accredited investors.

Press release: https://t.co/Xplh81KI9W

1/3 pic.twitter.com/pGcLhcZSdD

— Grayscale (@Grayscale) August 7, 2024

The investment firm noted that LDO is part of Grayscale’s financial crypto sector, which comprises crypto assets that facilitate financial transactions and services. In the press release, The firm’s head of product and research, Rayhaneh Sharif Askary, stated:

“Lido is helping to democratize staking on Ethereum, and Optimism is critical in allowing Ethereum to scale to compete with newer, faster Layer 1 blockchain.”

Askary added the two trusts would expose investors to protocols that would boost Ethereum’s efficiency and adoption in the broader DeFi ecosystem. He added that Optimism would also help Ethereum compete with faster Layer 1 (L1) blockchains.

Grayscale outlines the investment vehicle’s acquisition requirements 

Grayscale said both trusts are open for daily subscriptions to eligible and accredited investors and would operate as part of the firm’s existing suite of single-asset investment trusts. The two trusts would exclusively invest in Lido Protocol’s governance token(LDO) and Optimism Protocol’s governance token(OP). 

The firm also stressed that its private placements are only accessible to accredited investors, as outlined in Regulation D under the amended Securities Act of 1933. 

Meanwhile, the launch of the latest trusts comes after the firm revealed a performance summary of its new placement products launched in 2024.

Among the placement products highlighted in the report included Grayscale Sui Trust, which recorded returns of over 420% since its inception date on January 1. The company’s XRP Trust also recorded returns of 321% since its launch in May, while Grayscale Avalanche Trust recorded 93% returns. 

A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.