Recently, the cryptocurrency market has been volatile, with the price of Tree tokens experiencing a significant 40% fall, attracting widespread attention from the market. However, in this seemingly bleak market environment, some institutional investors are showcasing distinct investment strategies, quietly increasing their holdings of Tree tokens.

It is reported that a well-known leading fund purchased 20 million Tree tokens in just one week. Behind this counter-trend operation is their firm confidence in the future development of the Tree ecosystem. The logic of these institutional investors is based on the following key observations:

First, the total locked value (TVL) of the Tree ecosystem has skyrocketed from $500 million to $1 billion, indicating that user trust in the platform is rapidly increasing. Second, the staking volume of tETH has doubled, reflecting investors' recognition of the stability of the Tree ecosystem. Even more noteworthy is that TESR (which may be an important component of the Tree ecosystem) has been adopted as an interest rate anchor by three top protocols in the industry, which is undoubtedly a strong testament to the technical strength of Tree.

This phenomenon inevitably recalls the early development trajectory of Aave. Aave experienced a 60% price fall during its initial launch, but after institutional investors bought in at the bottom, its value realized an astonishing 100-fold increase. Some analysts believe that the current price fall of the Tree token may be a "washout" behavior, aimed at filtering out truly steadfast long-term holders.

As the Tree ecosystem continues to develop, the market generally expects that there may be more positive news in the future. For example, if Tree can reach a partnership with financial giants like Visa, its token price is likely to see a significant rise. In this scenario, the current price level may be viewed as a rare entry opportunity.

However, investors should also be aware of the inherent high-risk characteristics of the encryption currency market. Although the behavior of institutional investors may reveal certain market signals, individual investment decisions must still be based on comprehensive market analysis and personal risk tolerance.