In a series of events this week, the decentralized finance token AAVE saw a significant increase in its price and market capitalization following two substantial withdrawals by a cryptocurrency whale from Binance. The withdrawals led to an initial 8% price surge, followed by a further 16% increase, as reported by Lookonchain.
The whale's withdrawal of 140,100 AAVE tokens resulted in a daily high of $102.90 per token, according to data from CoinMarketCap. Concurrently, the 24-hour trading volume escalated to $336,641,183. This activity not only boosted the token's price but also strengthened AAVE's position against Bitcoin by 16.49%, pushing its weekly performance to an impressive +25%.
As a result of these developments, the market capitalization of AAVE crossed the $1.5 billion mark, highlighting the significant impact such large-scale transactions can have on the value and standing of a digital asset.
Meanwhile, amidst these developments, trading for AAVE was temporarily suspended on Polygon, Arbitrum, and Optimism due to issues with the Aave Protocol. The suspension underscores the inherent risks and volatility associated with digital asset trading and blockchain-based platforms.
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