Whale Doubles Down on AAVE Despite $3.3M Loss – What’s the Strategy Behind the Bold Move?

Whale Accumulates AAVE Amid Market Downturn

On January 13, on-chain activity revealed a major investor purchased 9,157 AAVE tokens at an average price of $171.4, spending approximately 501 ETH (~$1.57 million). This bold move comes despite the address currently sitting on an unrealized loss of around $3.3 million.

The accumulation signals strong belief in AAVE’s long-term value, even as prices remain below earlier entry points. Rather than exiting, the whale is doubling down—suggesting deep confidence in the protocol’s fundamentals and future trajectory.

Breakdown of the Whale’s Staking Strategy

• Previously acquired and staked 78,074 AAVE at an average of $214.5, totaling ~$16.75 million;
• Has earned 463.48 AAVE (~$79,000) in staking rewards to date;
• Continues to add to position during downturns, reflecting a disciplined, contrarian investment approach.

This type of behavior often precedes major ecosystem developments. As crypto markets stabilize, such strategic moves may indicate upcoming catalysts for AAVE’s resurgence.