AAVE Whale Accumulates 333,000 Tokens via Looping Strategy as Token Surges 13.5% on Technical Breakout

A significant crypto whale has strategically increased its AAVE holdings to approximately 333,000 tokens, valued at around $62.6 million, using a revolving loans strategy. According to on-chain analyst EmberCN, the whale deployed $14 million in USDC since November 24 to purchase 80,900 AAVE tokens at an average price of approximately $173. This same entity had previously liquidated 32,000 AAVE tokens at $101 during the market crash on October 11.

The whale's maneuvers are impacting AAVE's liquidity dynamics, influencing borrowing rates and total collateralization within the lending market. This aggressive accumulation signals strong confidence in the protocol's fundamentals and a readiness to sustain operations amid volatile conditions, though it also introduces concentrated liquidation risks should price thresholds be breached.

Concurrently, the AAVE token price rallied 13.5% on December 3, breaking out of a prolonged three-month downtrend to trade at $192.8. The breakout was confirmed by a technical pattern, with the MACD lines turning upward and the Aroon indicator showing a strong bullish signal (Aroon Up at 100%). Analysts suggest that if momentum continues, AAVE could target the $250 level, representing a nearly 30% increase from current prices.

Despite the price surge, underlying protocol metrics show challenges. Total Value Locked (TVL) on Aave has declined from a yearly high of $76.49 billion to $54.2 billion. Weekly revenue has also contracted significantly, falling from $4.34 million in October to $1.76 million last week, indicating reduced user participation. Analysts have cited heavy whale selling since August as a key driver behind AAVE's extended decline prior to this rally.

Several fundamental catalysts are supporting the positive sentiment. The AAVE DAO has proposed a $50 million annual token buyback plan to strengthen the token's value. The protocol is also nearing the release of its Version 4 (V4) upgrade, expected to improve capital efficiency and user experience. Furthermore, Aave's expansion plans into the Mantle network could help increase its user base and TVL. Regulatory optimism, fueled by a US SEC commissioner's comments on a potential "innovation exemption" framework for crypto firms, provided an additional market-wide boost.