📉 $AAVE Drops 18% as Governance Dispute Outweighs Broader Market Stability

Aave's native token, AAVE, has experienced an 18% decline over the past seven days, making it the weakest performer among the top 100 cryptocurrencies. This sharp drop contrasts with Bitcoin and Ethereum, which have remained stable or seen slight gains. 📊

The sell-off is primarily attributed to an escalating governance dispute within the DeFi protocol. The conflict centers on control over Aave's brand, domains, and public channels, with traders reacting negatively to the uncertainty surrounding future decision-making. 🛡️

On-chain data reveals significant whale activity contributed to the decline. One large holder sold approximately 230,000 AAVE tokens, valued at nearly $35 million, triggering a rapid intraday drop of almost 10%. This action intensified existing selling pressure. 🐳

In a notable contrasting move, Aave founder Stani Kulechov has reportedly been buying into the dip. Wallet data indicates Kulechov acquired about $12.6 million worth of AAVE over the past week at an average price of $176. However, this buying has not been enough to offset the broader selling pressure. 📉

The current price leaves the founder with an unrealized loss of around $2.2 million. This divergence highlights a unique, protocol-specific pressure on AAVE, setting it apart from the general stability observed across major crypto assets. ✨

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