AAVE Slides 8.51% as Chaos Labs Departs Amid V4 Upgrade, $340M Volume Signals Market Uncertainty

AAVEUSDT has experienced significant downward price movement over the past 24 hours, with the price falling 8.51% to $87.04 on Binance. This decline is primarily attributed to the recent exit of Chaos Labs, Aave’s principal risk manager, due to disagreements over strategy and budget just before the protocol’s anticipated V4 upgrade on Ethereum. The departure follows earlier exits of core technical teams, which has raised concerns around Aave’s risk management and governance stability during a key transition period. These developments have driven increased market activity, with 24-hour trading volume reported around $340 million. AAVE’s price is currently trading well below its all-time high and has dropped roughly 14% over the past month, reflecting broader uncertainty as the protocol navigates these internal changes and upcoming upgrades.