A notable AAVE movement in the cryptocurrency market has raised questions among investors.
According to on-chain data, yesterday morning, crypto investment company Multicoin Capital transferred approximately 150,000 AAVE tokens (worth approximately $14.91 million) to exchanges via Galaxy Digital and BitGo. Following these transfers, the price of AAVE dropped by about 7%, from $99 to $92.
After the price dropped to $92, some notable new transactions occurred. According to the data, Galaxy Digital withdrew approximately 98,000 AAVE tokens (worth approximately $9.08 million) from various exchanges and transferred them back to addresses linked to Multicoin Capital. Following these transactions, the AAVE price slightly recovered, rising to the $93 level.
Two different scenarios are now being discussed in the market. The first possibility is that Multicoin Capital implemented a short-term trading strategy by selling at high levels and buying back at lower prices. The other possibility is that institutional platforms like Galaxy Digital borrowed AAVE from Multicoin, sold them on the market, bought them back at lower prices, and then returned them.
*This is not investment advice.