AAVE Token Faces 2.36% Drop Amid $27M Liquidation and Governance Disputes; V4 Upgrade in Focus

AAVEUSDT declined by 2.36% in the past 24 hours, opening at 98.06 and currently trading at 95.75 on Binance, amid ongoing governance disputes regarding DAO revenue allocation and heightened scrutiny over concentrated governance power. The price drop and reduced trading volume are partly attributed to recent market volatility, a significant $27 million liquidation event linked to an oracle update, and broader cryptocurrency market weakness, as reflected in a 10.8% weekly decrease. Aave’s market capitalization stands near $1.5 billion, with circulating supply at 15.38 million AAVE and 24-hour trading volume reported as high as $289.19 million across exchanges. The protocol’s imminent V4 upgrade, expansion of Chainlink’s SVR system, and growing Mantle market activity remain key developments, but short-term sentiment is impacted by governance challenges and institutional withdrawals.