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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.
— Spot On Chain (@spotonchain) December 12, 2024
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
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.