- Buterin’s 1,900 ETH transfer to Aave v3 spiked AAVE price by 13%, making it a top performer.
- AAVE surged from $118 to $133, re-entering the top 50 cryptocurrencies by market cap.
- Stani Kulechov sees Buterin’s move as a boost for Aave, reaffirming its role in the DeFi space.
On August 31, 2024, Ethereum co-founder Vitalik Buterin made a liquidity move that sent shockwaves through the cryptocurrency market. Buterin transferred 1,900 ETH, equivalent to approximately $4.798 million, into Aave v3, a decentralized finance (DeFi) protocol.
This action triggered a notable price increase in AAVE, the native token of Aave Finance, making it the top performer among the top 100 cryptocurrencies by market capitalization within 24 hours.
According to on-chain data, Buterin’s movement of 1,900 Ethers to Aave v3 resulted in the acquisition of an equal amount of Aave Wrapped Ethers. This move by one of Ethereum’s most influential figures led to a rapid price surge in AAVE, pushing its value from $118 to $133, marking a weekly high.
This 13% increase in less than 20 hours brought AAVE back into the ranks of the 50 largest cryptocurrencies by market capitalization, only rivaled by the AI-focused token FET.
AAVE’s impressive performance highlights the impact of Buterin’s actions within the DeFi space. The price surge not only underscores Aave’s significance in the ecosystem but also reflects the confidence placed in the protocol by prominent figures like Buterin.
Despite the price increase, AAVE has since found stability at $130, with a market capitalization of approximately $1.95 billion.
Buterin has previously expressed his appreciation for Aave Finance, recognizing its importance in the DeFi landscape.
However, he noted that Aave might not meet the expectations of average users, or “normies,” seeking conventional loan services. In his words, “Aave is good and I’m very grateful that it exists, but it doesn’t offer what almost any normie will have in mind if you tell them you are offering ‘loans.’”
Stani Kulechov, the creator and CEO of Aave, welcomed Buterin’s activity on the protocol. He suggested that Aave Finance could be beneficial not just for individual users but potentially for the Ethereum Foundation itself.
Kulechov also pointed out that this is not the first time Buterin has utilized Aave for liquidity operations, reinforcing the protocol’s relevance in the broader Ethereum ecosystem.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
