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Aave (AAVE) whale activity reaches two-year peak as lending expands

Author: Content Editor
Aave (AAVE) has regained its position in the top 40 cryptocurrencies. The expansion of Ethereum and the current bull market have led to a recovery in Aave's lending activity. As a result, Aave has attracted whales at levels not seen since 2022. The protocol has experienced a significant increase in activity this year, benefiting from the inflow of stablecoins and the rise in ETH market prices. Aave now locks in over $20 billion in liquidity, making it the largest lending protocol. Despite its success, Aave is still considered undervalued with a market cap of $3.53 billion. Aave has successfully replaced Maker as a key source of yield and even caught the attention of World Liberty Financial. The protocol has been cautious about contagion and has vetted its collateral assets. However, Aave's real expansion began in October, with higher borrow volumes and growth of collaterals. AAVE has experienced a 40% growth in the past week, breaking into the top 40 cryptocurrencies. The token is trading close to its 2022 range and is expected to test $400 and potentially surpass its previous peak levels. Aave has also formed strategic partnerships with other DeFi protocols, such as Ethena's USDe, which has been incorporated into Aave's vaults. The liquidity profile of Aave has shifted, with an increased share of lending on Arbitrum, Avalanche, and Optimism. Furthermore, whale transactions for Aave have reached levels not seen since 2022. Overall, Aave is experiencing a resurgence in activity and value.

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