Aave Falls 24.95% Over the Past Month as Large Investor Moves and ETP Listings Underscore DeFi Market Fluctuations

AAVE, which serves as the governance token for the

decentralized finance (DeFi) lending protocol, extended its decline on November 20, 2025, dropping to $174.34—a 1.75% decrease over the previous 24 hours. In the last month, the token has slid 24.95%, and over the past year, it has lost 44.48% of its value. This notable price mirrors the heightened volatility in the broader market and highlights contrasting behaviors among large holders within the Aave network.

Whales Accumulate During DeFi Instability

On-chain data shows that a prominent investor recently increased their Aave holdings by acquiring 16,991 AAVE tokens for $3 million in

at an average price of $177 per token. This address now retains $5.79 million in USDC, suggesting the possibility of further purchases. This action demonstrates ongoing trust in Aave’s governance structure and its significance within the DeFi sector. Market observers point out that such moves may impact liquidity and sentiment, particularly as stablecoins remain central to macro capital flows.

Deleveraging Sparks Sell Pressure

In contrast, a trader with a leveraged position has started to unwind an $80 million stake in

(WBTC) using Aave flash loans. This position, established between May and July 2025 at an average entry of $116,593 per , has suffered substantial losses. The trader recently returned 150 WBTC to Binance, indicating a potential unrealized deficit of $3.734 million. The position currently consists of 550.2 WBTC on Aave, with $28.09 million in stablecoin liabilities and a health factor of 1.4. If WBTC’s price drops to $65,436, liquidation would be triggered, underscoring the risks associated with leveraged strategies in unpredictable markets.

Aave Pro Interface Debuts on V4 Testnet

Despite the market’s instability, Aave has pressed forward with protocol enhancements, unveiling the V4 testnet and offering developers an early look at the redesigned "Aave Pro" interface. The V4 update features a "Hub and Spoke" model to optimize liquidity, minimize fragmentation, and boost capital efficiency. The new Risk Premiums mechanism links borrowing costs to collateral quality, encouraging the use of more secure assets. The V4 testnet is now accessible for public evaluation, with Aave Labs stressing a "security-first" philosophy that incorporates several independent audits.

Institutional Interest Grows Across Europe

21Shares, a major provider of crypto ETPs, has broadened its lineup on Nasdaq Stockholm by listing six additional products, including the Aave ETP (AAVE), Chainlink ETP (LINK), and

ETP (AADA). These ETPs are fully backed and physically collateralized, giving both institutional and retail investors regulated access to digital assets without direct custody. With these new listings, 21Shares now offers 16 products on Nasdaq Stockholm, strengthening its position as one of Europe’s most comprehensive crypto ETP providers.

Market Impact and Investor Sentiment

The interplay of whale accumulation, leveraged trading activity, and the introduction of institutional products demonstrates the complex and sometimes opposing forces at work in the Aave ecosystem. While some participants are accumulating governance tokens for long-term gains, others are adjusting to risk management needs in a tightening environment. Meanwhile, the launch of new ETPs is making regulated crypto investments more accessible for European investors, which could enhance both adoption and liquidity for Aave.

As Aave advances its technical upgrades and governance processes, market watchers will keep a close eye on both on-chain trends and institutional moves. The interaction of these elements will be crucial in shaping the token’s direction in the months ahead.