AAVE whale dumps nearly 1 million tokens at scale; exchange reserves rise, triggering sell-off concerns

Gate News message: Since early February, AAVE (AAVE) exchange reserves have risen to 2.23 million tokens, up from the previous 2.07 million, reflecting ongoing token sell-offs by multiple large whale groups. The holdings of a major mainstream CEX increased from 1.57 million tokens to 1.63 million tokens, showing that more and more tokens are flowing into exchanges and increasing short-term sell-off pressure.

On-chain data further shows that whales holding between 100,000 and 1 million AAVE have net sold about 960,000 tokens since late February; their total holdings have fallen from 7.45 million tokens to 6.49 million. The mid-tier holding group with between 10,000 and 100,000 AAVE tokens also began selling around mid-March, netting about 140,000 tokens, bringing the total down to 3.60 million. Another large wallet cohort holding between 1 million and 10 million AAVE saw holdings rise from 2.58 million tokens to about 3.00 million in March, but afterwards it remained stagnant, with no clear signs of accumulation.

AAVE’s price performance aligns with the whales’ sell-down trend, hitting investor confidence. Analyst Darkfost pointed out that AAVE is facing structural challenges in the near term, including key contributor departures and internal protocol friction, which have pushed the price below the $100 psychological level. On April 7, AAVE traded as low as $85.05 intraday, the lowest level since the plunge in October last year. As of the time of writing, the AAVE price has rebounded to about $95, up roughly 2% in line with the broader crypto market, driven by news of a ceasefire between Iran and Israel.

Santiment and BeInCrypto Markets data show that this sell-off wave has skewed market sentiment bearish, and the market may continue to face pressure in the short term. Investors are locking in remaining gains or exiting part of their positions to cope with potential volatility risks. Overall, the trend of concentrated whale sell-offs alongside rising exchange reserves will become an important indicator to watch for AAVE’s price direction.

Whether this rebound can continue, or whether the price will dip again, still depends on how market supply and demand and whale holding dynamics affect AAVE’s short-term outlook.