AAVE, an early investor within the native token for the DeFi mission, has a revenue of over $12.5 million after proudly owning the asset for 3 and a half years.
The cryptocurrency market is filled with tales of buyers who earn thousands and thousands of {dollars} inside a couple of days or perhaps weeks put money into one meme coin or different tasks with much less precious potential. However whereas such tales are sometimes baffling, historical past exhibits that even higher long-term outcomes may be achieved by investing long-term in tasks that display exceptional potential.
That turned out to be true within the case of an investor who acquired tokens within the DeFi protocol, Aave (previously often called EthLend). Within the early days of the DeFi trade, on-chain knowledge exhibits that the stated deal with invested roughly $500,000 to amass 12.5 million LEND tokens at a value of $0.04.
In 2020, Aave underwent a serious change the place LEND tokens had been transformed to AAVE at a 100:1 ratio. Thus, the investor obtained 125,000 AAVE, which they’d deployed and retained over the previous three years.
Quick ahead to the current, on-chain tracker Lookonchain found that the deal with has now lastly realized a revenue on their funding. The investor bought 30,000 AAVE tokens by way of the DeFi protocol Cumberland and realized $3 million, or roughly 500%, on his preliminary funding. On the identical time, the deal with nonetheless accommodates greater than 100,000 AAVE tokens (value roughly $10 million).
In 3.6 years, this early $AAVE purchaser turned $500,000 into $13 million, which equates to $12.5 million (25x)!
He bought $30,000 $AAVE($3.01M) by way of #Cumberland to take revenue 6 hours in the past and nonetheless has 100K $AAVE($10M) left.
He spent 500,000 $USDC to purchase 12.5 million $LEND for $0.04 on Could 6, 2020 (migrated to 12,500 $AAVE). pic.twitter.com/vd80wLHIIO
— Lookonchain (@lookonchain) December 27, 2023
Endurance pays off, nevertheless it might have been extra
The Aave investor’s story lends credence to how holding the suitable crypto belongings long-term can show to be a viable technique. It’s placing, nevertheless, that the investor could have realized far more revenue if he had been to promote a part of his portfolio in 2021.
Precisely, AAVE hit an all-time excessive of $666 in Could 2021. So the final sale of 30,000 AAVEs might have generated virtually $20 million. In both case, the investor nonetheless has important publicity to the asset and may look to capitalize on constructing bullish momentum to understand extra income sooner or later.
If AAVE had been to ever attain its earlier all-time excessive, the investor’s present holdings can be value roughly $100 million. On the time of writing, AAVE is buying and selling round $100.4, up 80% for the reason that starting of the 12 months.