AAVE Slides 10% After $38M Whale Exit Triggers Sudden Market Shock

One massive whale action shook the AAVE market. On-chain trackers alerted that an unknown wallet dumped a huge AA position. The whale sold about 230,350 AAVE units, which amounted to about 38 million dollars. This abrupt departure forced the price of AAEE to plummet by several hours by reducing it to $158.

High-Conviction Sell Confirmed on-Chain

OnchainLens and Lookonchain blockchain data validate the trail of the transaction. The whale changed AAEE to stETH and WBTC, indicating a rotation to perceived safer or more liquid assets. The trade recorded a loss of up to $13.75 million. This move indicates a rush and not profitability and creates panic in the market.

The time of the selloff coincides with the increased tension within the AAVE DAO. Discussions on interface fees, protocol control, and tokenholder incentives at the community level persist in coming to a head. The lack of governance usually dismays short-term confidence. Big holders will be more likely to liquidate on the loss of transparency, and this whale seems to have made a move.

Liquidations and Momentum Selling

The high-paced seller enhanced downward movement. Short-term liquidations and stop losses ensued with AAVE breaking down to important intraday levels. A decline of 10 percent in a brief period indicates narrow liquidity in those price areas. The traders moved rapidly when volatility shot across DeFi tokens.

Although it dropped drastically, buyers soon re-emerged in the area around the 160 mark. This zone was support in the short run. Other traders considered the action to be a flush due to liquidity and not a structural failure. The initial shock was followed by stabilized price action on the spot demand.

The fundamental metrics of AAVE are up to date. The GHO stablecoin has recently hit another all time high of 350 million. Efforts to development AAVE V4 are ongoing even before releases are scheduled towards the end of the year. Who-whale exits affect the price in the short-term, though the fundamentals of protocols still play in favor of long-term applicability.