AAVE Token Drops 4.35% Amid Chaos Labs Exit, Governance Shifts, and V4 Launch Impact

AAVEUSDT experienced a notable price decline in the last 24 hours, dropping 4.35% from an opening price of 94.70 to 90.58 on Binance, mainly attributed to the recent departure of key risk manager Chaos Labs and ongoing protocol governance changes, which have raised concerns about operational stability. The launch of Aave V4 on Ethereum brought new liquidity architecture and over $10 million in deposits, indicating ongoing institutional interest, but the market remains sensitive to internal developments. Trading volume was robust, with over $387 million to $403 million reported, and the circulating supply stands at approximately 15.4 million tokens out of 16 million. Despite high protocol fee generation and a dominant share in DeFi lending, recent protocol-specific issues have increased volatility and selling pressure.