AAVE Token Drops 15% Amid $140 Million Liquidations, High Volumes, and Strategic Shifts

AAVEUSDT experienced a significant 24-hour price decline of 15.11%, dropping from an open of 121.94 to 103.52 according to Binance. This sharp sell-off is attributed to over $140 million in recent liquidations on the Aave protocol, affecting more than 1,182 wallets and involving a major loan tied to 2.3% of the total AAVE supply. Strategic developments, including Aave Labs' retirement of the Avara brand to refocus on its core DeFi protocol, and the pause of Aave V3 deployments on low-activity chains, contributed to heightened market uncertainty. Founder Stani Kulechov’s notable ETH sale and ongoing bearish sentiment further pressured the price, with the Relative Strength Index at oversold levels. Trading activity remains high, with AAVE/USDT volumes exceeding $1 billion in the past 24 hours and market capitalization ranging between $1.56 billion and $1.99 billion, as the circulating supply nears 15.32 million tokens.