AAVE Token Surges 3.87% Amid Chaos Labs Exit, $400M Volume Spike, and v4 Governance Shifts

AAVEUSDT experienced notable price volatility in the past 24 hours, with a 3.87% increase from a 24h open of $91.77 to a current price of $95.32 on Binance. The primary driver for recent price fluctuations is the departure of Chaos Labs, a key risk management contributor, following governance disagreements and legal concerns related to Aave's V4 launch; this led to a sharp price drop below $84 before recovering. The Aave v4 upgrade on Ethereum, introduction of unified liquidity, and transition of risk management duties to LlamaRisk have also contributed to market activity and uncertainty. Trading volume has surged, with reported figures exceeding $400 million, indicating heightened trader engagement and reaction to governance developments. Aave’s market capitalization stands between $1.4 billion and $1.5 billion, with a circulating supply of about 15.4 million tokens, and its market remains highly active as stakeholders monitor the protocol’s response to recent changes.