Expert Investor Arthur Cheong Gathers Promising Ethereum Altcoin in DeFi Ecosystem

Crypto investor Arthur Cheong has observed a trend where “smart money” investors are amassing a prominent altcoin within the Ethereum ecosystem. Cheong, addressing his 172,200 followers on the social media platform X, notes that affluent wallets are acquiring the native token of the decentralized finance (DeFi) lending platform Aave (AAVE) as the token’s supply on crypto exchanges experiences a notable decline.

He highlights that the total supply of AAVE on exchanges has dropped by approximately $18.4 million over the last 30 days, with significant accumulation among select smart money wallets. At the time of reporting, AAVE is trading at $112.84.

Cheong anticipates a promising future for the DeFi sector, citing BitGo’s controversial decision to shift its Wrapped Bitcoin (WBTC) business to a multi-jurisdictional custody system. This move has sparked interest from other players entering the DeFi space, with Coinbase hinting at its own version of Wrapped Bitcoin called “cbBTC.”

According to Cheong, BitGo’s strategic shift has motivated more significant players to engage in this vertical with renewed enthusiasm. He predicts a substantial influx of at least $20 billion in Total Value Locked (TVL) from various forms of wrapped/bridged BTC into the DeFi ecosystem in the next 6-12 months. Notable additions include cbBTC from Coinbase and tBTC from Thresold Network. With Coinbase’s extensive reach as the largest crypto custodian globally, Cheong believes this move will significantly contribute to bringing BTC into the DeFi realm.

Cheong is optimistic about the future growth of DeFi and the entrance of major players into the sector, spurred by recent industry developments. He foresees a substantial increase in TVL from wrapped BTC forms, driven by the likes of Coinbase and other entities. Cheong’s insights shed light on the evolving landscape of the crypto market and the potential for further expansion within the DeFi space.