AAVE Plunges 10% After Whale Sell-Off and DAO Governance Turmoil

AAVE dropped 10% after a whale sold $37.6M in tokens, coinciding with DAO governance tensions. The price hit $158–$162, with market sentiment shaken but core metrics still strong.

AAVE experienced a sharp 10% price drop, triggered by a whale selling approximately 230,350 tokens valued at around $37.6–$38 million. This large-scale sell-off, executed over a few hours, caused the price to fall to the $158–$162 range and sparked panic in the market. The whale converted AAVE holdings into stETH and WBTC, realizing a significant loss, which suggested urgency rather than profit. The timing of the sell-off coincided with governance tensions within the AAVE DAO, including controversy over frontend swap revenue redirection and debates about protocol control. The DAO faces a governance crisis, with a proposal to transfer key brand assets to the DAO now up for a vote. Despite the sell-off, some large holders have accumulated more AAVE, and core protocol metrics remain strong. The price is now at a critical support zone around $160–$162, with further downside possible if this level fails. The episode highlights the impact of whale activity and governance issues on market sentiment and price stability.