HomeCryptoDailyWhat’s Behind the 10% AAVE Price Drop? Bhushan Akolkar

What’s Behind the 10% AAVE Price Drop? Bhushan Akolkar

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 AAVE price fell more than 10% as governance concerns resurfaced, driven by allegations that Aave Labs redirected swap fee revenue away from the Aave DAO.
The post What’s Behind the 10% AAVE Price Drop? appeared first on Coinspeaker. –   

While the broader crypto market is consolidating a bit, AAVE

AAVE
$155.9



24h volatility:
10.6%


Market cap:
$2.39 B



Vol. 24h:
$694.52 M



price has seen a sharp drop of 10.5% in the last 24 hours.

This drop comes amid the growing governance tensions within the DeFi protocol. Stani Kulechov, the founder of the Aave protocol, remains at the center of this controversy.

AAVE Price Crashes Amid Governance Tensions

During Asian trading hours on Dec. 22, AAVE fell from $178 to $159 as DeFi altcoins faced heavy selling pressure.

Daily trading volume surged 232% to over $600 million, interrupting the whale-driven AAVE rally.

The decline comes amid concerns that Aave Labs, the parent firm behind the AAVE protocol and led by Stani Kulechov, redirected millions of dollars in swap fees away from the Aave DAO treasury.

Allegations suggest these funds were redirected without approval from token holders, raising concerns about decentralized governance and the influence of the protocol’s founders.

The dispute centers on Aave’s decision to integrate CowSwap into its frontend, replacing ParaSwap.

Critics argue that the change, which was implemented after Aave Labs received a grant from CowSwap, may have diverted as much as $10 million in potential annual revenue from the DAO.

In an open letter, an Orbit delegate claimed that the previous ParaSwap integration was generating roughly $200,000 per week in revenue for the DAO.

Members of the DeFi community have warned that the alleged redirection of fees will raise doubts over the weakening decentralized governance of the platform.

Stani Kulechov in Damage Control Mode

Stani Kulechov and Aave Labs have responded by stating that revenue generated from frontend operations is distinct from core protocol revenue. He added that historically, this has been voluntary rather than owed to the DAO.

However, some community members continue to express concerns over Kulechov’s dual role as Aave founder and head of Aave Labs.

Some critics have questioned the extent of founder control over protocol-related assets and the potential for conflicts of interest.

In an effort to ease tensions, Kulechov has moved a disputed DAO alignment proposal to Snapshot for a formal community vote.

The proposal seeks to transfer key brand assets, including website domains and official social media accounts, from Aave Labs to the Aave DAO.

Bitcoin Hyper (HYPER) Presale Nears $30M as Buzz Builds Around Bitcoin Layer-2 Network

Bitcoin Hyper, the next-generation Layer-2 network for Bitcoin

BTC
$89 761



24h volatility:
2.1%


Market cap:
$1.80 T



Vol. 24h:
$34.09 B



, is tackling BTC’s scalability challenges head-on. With $29.6 million already raised in its presale, the project is generating huge excitement among crypto investors and enthusiasts.

HYPER promises faster, cheaper transactions while keeping near real-time settlement on the Bitcoin network.

Tokenomics of Bitcoin Hyper

  • Token: HYPER
  • Price: $0.013465
  • Presale: $29.6 million
  • Staking APY: 39%

Beyond simple transfers, it aims to power a Bitcoin-native DeFi ecosystem, enabling complex financial applications on Bitcoin and making it one of the best crypto presales in the market today.

Interested in joining the presale? Check out our guide on how to buy Bitcoin Hyper.

The post What’s Behind the 10% AAVE Price Drop? appeared first on Coinspeaker.

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