AAVE token plunged 18% in a week amid a governance battle over control of Aave’s brand and public channels, marking the steepest drop among top cryptocurrencies.
AAVE has fallen 18% over the past week, underperforming all other top 100 cryptocurrencies as a governance dispute over control of Aave’s brand, domains and public channels unsettles traders. The selloff intensified after a large holder sold around 230,000 AAVE worth nearly $35 million for ether derivatives and bitcoin, causing a sharp 10% intraday drop. Despite founder Stani Kulechov purchasing $12.6 million worth of AAVE at an average of $176, the decline persisted, leaving him with an unrealized $2.2 million loss. Unlike broader crypto markets, which remained stable with bitcoin near $90,000, Aave’s decline reflects protocol-specific risk from unresolved governance tensions.