Why is AAVE Facing Downward Pressure?

The decline in AAVE’s price is largely driven by significant whale liquidations and internal governance debates. Most notably, a major investor offloaded approximately 230,000 AAVE (worth ~$35 million) in a short window last Monday. These tokens were swapped for Bitcoin and Ether derivatives, triggering a sharp 10% intraday drop. This selling pressure intensified following heated discussions within the DAO regarding brand control.

Governance Disputes and Snapshot Voting

A critical debate has emerged concerning the control of Aave’s brand assets and online presence. Ernesto Boado, co-founder of BGD Labs, advocated that domain names and social media accounts should be directly controlled by AAVE token holders. Stani Kulechov responded by moving the proposal to a Snapshot vote, adhering to the protocol’s established governance framework. This move highlights the ongoing transition toward full decentralization within the ecosystem.

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The Message Behind Founder Accumulation

While Kulechov’s purchases haven’t yet offset the broader market sell-off, they serve as a powerful confidence indicator for the community. On-chain analysis shows these trades were executed strategically via CoW Protocol using WETH to minimize market impact. For long-term observers, the founder’s willingness to “buy the dip” suggests that despite short-term volatility and governance hurdles, the fundamental outlook for Aave remains robust.

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The post Founder Keeps Buying but AAVE Price Keeps Falling appeared first on Coin Engineer.

On Saturday, claims emerged that Aave would receive a special token allocation from World Liberty Financial (WLFI). The rumors caused the token price to fall from $385 to $339. Later, it recovered slightly to around $352. 

World Liberty Rumors Shake Aave Price 

Blockchain reporter Colin Wu reached out to the WLFI team, who denied the claims. According to the team, reports stating that Aave would receive 7% of the total WLFI supply were false. However, Wu referenced a community proposal from October 2024. The proposal outlined that the Aave DAO would receive 7% of WLFI circulating supply and 20% of protocol revenue from WLFI distributions on Aave v3. 

Aave founder Stani Kulechov described the proposal as “the art of the deal.” He also confirmed that the proposal’s terms remain valid. Nevertheless, with no official announcement, discussions intensified. Meanwhile, Cointelegraph contacted both Aave and WLFI representatives but received no response by publication time. 

DeFi Interest Surges Again 

The rumors surfaced during a resurgence in the DeFi sector. According to DeFiLlama, total value locked (TVL) across protocols surpassed $167 billion. This figure approaches the all-time high of $212 billion seen in December 2021. 

Following the U.S. elections, expectations of a friendlier regulatory environment drew investors into the space. Banks, asset managers, and financial services firms increasingly engaged with DeFi protocols. This institutional participation is shaping many current market narratives. 

Moreover, the community debates how government intervention could alter DeFi’s decentralized nature. On the other hand, some users worry traditional institutions may take control of the sector. Ultimately, the Aave rumors fueled these discussions further. 

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The post WLFI Claims Proven False, Token Experiences Price Drop! appeared first on Coin Engineer.

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If AAVE fails to break through the $230 resistance, the nearest support level would be the upward FVG region below, which could provide potential buying opportunities. This area is important to monitor as it will dictate whether AAVE will experience another leg higher or face a price pullback.

The future movement of AAVE will largely depend on how the price interacts with these critical levels. A closure above $230 would likely signal further bullish momentum, while rejection at this resistance could lead to more volatility in the market.

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The post AAVE Continues Its Rise: At a Critical Resistance Level! appeared first on Coin Engineer.