AAVE Slides 30% in Four Weeks, Trailing Bitcoin and Ether

$AAVE, the governance token of decentralized lending protocol Aave, fell about 30% over four weeks, suffering a steeper decline than bitcoin and ether.

The token's aggregated CoinGecko quote was $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 lost 16.7% over approximately seven days and 29.7% over approximately 28 days.

Over the matching four-week window, bitcoin fell 17.5% and ether dropped 21.7%. Their seven-day losses were 11.5% and 15.7%, respectively.

The low refers to aggregated price samples, not an exchange-level intraday record. The comparison establishes $AAVE's underperformance against the two benchmarks, but not a cause for its additional losses.

Locked Value Falls Less Than the Token

Aave's total value locked fell from $17.95 billion to $15.53 billion in DefiLlama's daily UTC observations dated Oct. 17 and Nov. 14, a decline of about 13.5%. That was smaller than the token's drop over the roughly corresponding period.

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. The decline therefore cannot be read as an equivalent withdrawal of capital.

Governance discussions have also focused on reducing collateral risk. Aave risk adviser LlamaRisk proposed winding down $1.33 billion of collateral in Aave V3 Core, backing $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, stopping new supply and borrowing against them without immediately liquidating existing loans. Borrowers could repay, withdraw or migrate. LlamaRisk said the initial measures would be submitted as an onchain governance proposal following approval.