Aave Governance Dispute Erases $500M in AAVE Value Amid Recovery Signs
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 2d ago- Governance Crisis Impact: The governance dispute between Aave Labs and the DAO resulted in approximately $500 million in AAVE market value losses; however, on-chain data indicates that large investors accumulated tokens during the price decline, reflecting confidence in the protocol.
- Deposit and Revenue Growth: Despite price volatility, Aave's deposits increased by about 60% year-over-year, with weekly revenues projected to reach record levels by the end of 2025, underscoring the protocol's robust fundamentals.
- Concentration of Holdings: The share of AAVE held by the top 100 addresses rose from 72% to 80%, as large wallets and founder Stani Kulechov bought during the dip, signaling a governance stress test rather than a collapse.
- Market Sentiment Shift: Aave Labs announced plans to share revenue from activities outside the core protocol with AAVE holders, receiving positive community feedback, which has led to an improvement in market sentiment, indicating that the governance crisis is viewed as part of the protocol's maturation process.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
