The post Ethereum whales are buying up DeFi tokens after the market dip appeared on BitcoinEthereumNews.com.

Whales are re-accumulating DeFi tokens, as the entire ecosystem followed the recent Ethereum (ETH) dip. The buying is focused on major lending protocols, which have retained a large part of their value despite the market correction. DeFi lending protocols are still in demand, as whales are re-accumulating positions in some of the top DeFi assets. After a turbulent day, whale buyers are back, re-buying the leading tokens at a discount. Tokens were not the main focus, as larger traders also bought the dip on Ethereum (ETH). However, the top DeFi protocols managed to reverse their recent price drop.  Based on Alphanomics data, inflows are back to the top performers for each narrative. In the case of the Ethereum DeFi ecosystem, Aave (AAVE) is the top pick.  Aave buyback may boost token price The Aave lending protocol saw buying from 200 whales for a total of $9.15M. After the recent inflows, AAVE bounced from lows of $116.32 to $132.49. The main narrative behind Aave is the implementation of tokenomics that will include buybacks. The platform’s new tokenomics may set aside up to $1M for buying back tokens each week.  As of April 7, the buyback is still at the proposal stage, published for discussion by the Aave community. The first mention of a buyback was made in a widely approved Temp Check in the summer of 2024. Since then, Aave DAO increased its available reserves by 115%.  Currently, Aave DAO sits on $115M, after achieving growth despite the volatile market conditions. The DAO retains its funds even after financing Aave Labs and paying out the Merit incentives. The fund may provide regular liquidity injections, boosting the presence of Aave.  The protocol is also in focus for its ubiquity in the crypto lending space. Despite the market slowdown and volatile ETH prices,…

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Filed under: News - @ April 7, 2025 7:29 pm