Blockchain Capital, a well-known venture capital platform, has recently gained significant attention by depositing $AAVE
tokens to FalconX. As per Spot On Chain, a popular on-chain analytics firm, after halting AAVE activity for two years, Blockchain Capital has deposited $16,964 tokens to FalconX. The analytics provider disclosed this development on social media.
Blockchain Capital (@blockchaincap) deposited the first 16,964 AAVE ($5.06M) to #FalconX 4 hours ago, after 2 years of inactivity with the token.
As an early investor, the VC acquired 233,256 AAVE between Aug 2020 and March 2023 from various sources, including OTC sales,… pic.twitter.com/BEPlnfvKy7— Spot On Chain (@spotonchain) December 12, 2024
Blockchain Capital’s Deposit of $5.06M in AAVE into FalconX Signifies a Likely Strategic Move
Spot On Chain mentioned that the deposit of a staggering $5.06M in AAVE into FalconX, denotes a likely strategic move. Blockchain Capital stands among the early AAVE investors in the DeFi realm. From August 2020 to March 2023, the platform amassed 233,256 AAVE coins from diverse sources. The respective sources included Anchorage Digital, project-related wallets, and over-the-counter sales. The lucrative investment strategy of Blockchain Capital enabled it to leverage the price growth of AAVE.
At present, AAVE is changing hands at $305, signifying an almost 268% return on the initial investment of Blockchain Capital. Irrespective of the recent deposit, the platform retains a huge holding of up to 216,292 AAVE. This figure accounts for $66M, making Blockchain Capital the biggest non-centralized exchange and non-team AAVE holder.
The recent AAVE deposit by Blockchain Capital could suggest many strategic intentions. The platform may be getting ready for big-scale trades, endeavoring to capitalize on the trading and liquidity capabilities of FalconX. On the other hand, it could be delving into the opportunities to lend or stake AAVE in line with its resilient DeFi potential.
The AAVE Deposit after 2-Year Dormancy Indicates a Renewed Confidence in Its Long-Term Viability
This development comes after 2-year dormancy when Blockchain Capital kept its AAVE holdings untouched. However, according to Spot On Chain, Blockchain Capital’s renewed AAVE activity points toward the top investors’ confidence in the long-term viability of the protocol.