Cryptocurrency investor Arthur Cheong says “smart money” entities appear to be accumulating a well-established altcoin of late.
Cheong tells his 172,200 followers on social media platform X that millionaires’ wallets are gobbling up decentralized finance (DeFi) lending platform Aave’s native token (AAVE) amid a sharp decline in the token’s supply on cryptocurrency exchanges.
“The total supply of AAVE on exchanges has decreased by approximately $18.4 million over the last 30 days
“We’re also seeing a fair amount of lower 7-figure accumulation among some smart money portfolios.”
At the time of writing, AAVE is trading at $112.84.
Cheong says he can “already see the stars aligning for the next phase of DeFi growth.”
The investor is referring to BitGo’s recent controversial announcement to move its Wrapped Bitcoin (WBTC) business to a multi-jurisdictional custody system.
According to the investor, BitGo’s move is now encouraging more players to enter the DeFi space. Coinbase has since teased its own possible version of Wrapped Bitcoin, dubbed “cbBTC.”
Said Cheong,
“The unforced strategic error of BitGo and Wrapped BTC (BTC) has actually catalyzed more large players to enter this vertical with renewed vigor.
We believe we will see at least $20 billion in TVL (total value locked) coming from various forms of wrapped/bridged BTC into the DeFi ecosystem over the next 6-12 months, with some of the most notable being Coinbase’s cbBTC and Thresold Network’s tBTC.
Coinbase being the largest crypto custodian in the world has a massive distribution channel to bring BTC to DeFi. I wouldn’t short it.
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Featured image: Shutterstock/Sensvector/Philipp Tur
