Aave (AAVE) Token Price Update: Market Dynamics and Whale Selling

Decentralized Finance Protocol Aave is currently facing an interesting point in its market dynamics.

Decentralized Finance Protocol Aave is currently facing an interesting point in its market dynamics. At this moment, the native token of the project, $AAVE, is currently trading at an impressive daily growth, up 6.98% over the last 24 hours. Each token is valued at $166.73, up by almost ten dollars since yesterday.

But despite that, this bullish movement throughout the day is not enough to revert Aave’s most recent losses. The asset is currently down by 10.97% in the week, adding up to a 12.89% deficit in the month. AAVE's performance compared to other DeFi protocols

At the beginning of November 2024, Aave's token price would reach a 3-year high of $398 per token. However, since its peak, $AAVE lost over 62% in value by mid-April, signaling that not only the rally ended, but the altcoins' market was turning bearish.

These losses are not exclusive to the DeFi lending firm, however. In fact — when compared to its competition, Curve, MakerDAO, Compound, and Alchemix — AAVE rank as the second-best performance since November 20.

While these losses reflect broader market trends, a significant factor contributing to Aave's recent price pressure is a large-scale sell-off by a whale investor.

A major AAVE whale has been actively offloading its holdings, fueling speculation about the asset's future price trajectory.

On March 19, after four months of inactivity, the whale deposited 43,500 AAVE (worth $7.48M) to FalconX, reducing its balance to 67,426 AAVE. At the time, the whale had racked up an estimated $12.72M profit from AAVE, marking an 88.4% gain, according to SpotOnChain.

However, activity escalated on April 1st, when the same whale deposited another 30,001 AAVE (worth $5.01M) to the FalconX exchange. Since resurfacing in mid-March, the entity has now offloaded 73,501 AAVE (valued at $12.51M) at an average price of $170.13 per token.

Despite these sizable sales, the whale still holds 37,425 AAVE (approximately $6.23M), bringing its total estimated profit from AAVE to $12.46M (+87%).

The sell-off raises questions about institutional sentiment toward AAVE, especially as the token continues its mixed performance across the broader DeFi sector.