AAVE Drops 30% in Four Weeks, Underperforming Bitcoin and Ether
Key Takeaways
- •AAVE fell 29.7% over approximately four weeks and 16.7% over roughly seven days, exceeding bitcoin's and ether's matching four-week losses of 17.5% and 21.7% by about eight to 12 percentage points.
- •The token's aggregated CoinGecko quote reached $108.88 at 9:30 p.m. ET on Nov. 13, the lowest among the provider's price samples reviewed for the preceding 28 days.
- •Aave's total value locked declined about 13.5%, from $17.95 billion to $15.53 billion between DefiLlama's observations dated Oct. 17 and Nov. 14, a slower drop than the token's, though falling asset prices mean it cannot be read as equivalent capital withdrawal.
- •Aave risk adviser LlamaRisk proposed winding down $1.33 billion of collateral in Aave V3 Core, which backed $1.03 billion of debt as of Nov. 9, arguing that pooled borrowing rates leave suppliers inadequately compensated for complex collateral risks.
- •The plan would initially freeze affected reserves, halting new supply and borrowing while letting borrowers repay, withdraw or migrate positions, with the measures to be submitted as an onchain governance proposal following approval.
AAVE ($AAVE), the governance token of decentralized lending protocol Aave, has lost roughly 30% of its value over the past four weeks, a steeper decline than that of bitcoin or ether.
The token's aggregated CoinGecko quote stood at $108.88 at 9:30 p.m. ET on Nov. 13 — the lowest among the provider's price samples reviewed for the preceding 28 days. Over approximately seven days, $AAVE fell 16.7%, and over approximately 28 days it dropped 29.7%.
The two largest cryptocurrencies also declined over the matching four-week window, though less sharply: bitcoin fell 17.5% and ether dropped 21.7%. Their seven-day losses were 11.5% and 15.7%, respectively. That spread amounts to roughly eight to 12 percentage points of additional four-week losses for AAVE against the two benchmarks.
The cited low refers to aggregated price samples rather than an exchange-level intraday record. The comparison establishes AAVE's underperformance against the two benchmarks, but does not identify a cause for its additional losses.
Locked Value Falls Less Than the Token
Aave's total value locked (TVL) declined from $17.95 billion to $15.53 billion between DefiLlama's daily UTC observations dated Oct. 17 and Nov. 14, a drop of about 13.5% — smaller than the token's decline over roughly the corresponding period. Measured over roughly the same window, the token lost value at more than twice the rate of the assets locked in the protocol's markets, a gap that separates its market performance from the protocol's footprint.
TVL measures the value of assets locked in the protocol, not net deposits or borrowing demand. As DefiLlama's methodology explains, falling asset prices can reduce TVL even when users deposit more assets, so the decline cannot be read as an equivalent withdrawal of capital.
Risk Proposal Targets $1.33 Billion in Collateral
Governance discussions have also focused on reducing collateral risk. As the protocol's governance token, $AAVE represents holders' voting weight in Aave's onchain decision-making. Aave risk adviser LlamaRisk proposed winding down $1.33 billion of collateral in Aave V3 Core, which backed $1.03 billion of debt as of Nov. 9. It argued that pooled borrowing rates leave suppliers exposed to complex collateral without adequate compensation for the additional risks.
As The Defiant previously reported, the plan would initially freeze affected reserves, halting new supply and borrowing against them without immediately liquidating existing loans. Borrowers would be able to repay, withdraw or migrate their positions. LlamaRisk said the initial measures would be submitted as an onchain governance proposal following approval. How the proposal progresses through governance — and how DefiLlama's daily TVL observations shift alongside it — offer the nearest concrete checkpoints for readers tracking the story.
Source: CryptoNewsNet
