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Whales are offloading DeFi tokens while Ethereum (ETH) recovers higher price levels

Whales are offloading DeFi tokens while Ethereum (ETH) recovers higher price levels
Whales are selling off their holdings of DeFi tokens, taking profits after the sector reached a new peak in total market capitalization. The profit-taking reflects a trend in the whole sector, with DeFi tokens valued at $134 billion. Ethereum achieved stability, leading to the expansion of DeFi in the past year. However, as DeFi tokens sparked profit-taking, Ethereum was stabilizing at around $3,700. The altcoin season index increased, drawing out whales with short-term trading strategies. One whale wallet sold a significant amount of AAVE for a potential profit of $4.93 million. Another wallet focused on ENA, unstaking and depositing the tokens to Binance. Despite fewer mentions on social media, DeFi remains a staple in the crypto space. DEX activity started the new year with peak volumes, accounting for over 19.5% of centralized exchange volumes. The record supply of stablecoins also benefits DeFi, signaling expansion for the biggest lending protocols. ETH trading at $3,696.21 remains key for DeFi collaterals and DEX activity.

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