AAVE Falls 18% Over Week Amid Governance Dispute Impacting Token Value
AAVE has declined about 18% over the past week, becoming the worst performer among the top 100 cryptocurrencies. This drop is tied to an ongoing governance dispute concerning control over Aave's brand, domains, and public channels. The conflict has intensified as the debate moves toward a Snapshot vote.
Founder Stani Kulechov purchased approximately $12.6 million worth of AAVE at an average price near $176 during the week. Despite this, he faces an unrealized loss of about $2.2 million as the token's price fell.
A significant holder's sale of around 230,000 AAVE tokens (valued at roughly $35 million) in exchange for ether derivatives and Bitcoin contributed to an intraday price drop of about 10%, as tracked by onchain data. While Kulechov's buying activity is notable, it has not offset the broader selling pressure linked to governance uncertainty.
This price action contrasts with Bitcoin near $90,000 and other major tokens that remained flat or increased, suggesting the decline is specific to AAVE rather than a broad cryptocurrency market pullback.
The dispute introduces an open-ended risk with no clear timeline for resolution. It has the potential to reshape value flows within the protocol and affects off-chain control by the DAO, specifically concerning brand management and front-end access.
