Major AAVE Position Liquidated: Whale Dumps $38M, Triggers Sharp Price Correction

A significant whale wallet has offloaded approximately $38 million in AAVE tokens, converting the position into stETH and WBTC holdings. This substantial exit triggered an immediate market reaction, with AAVE's price tumbling 10% in the aftermath—sliding from $176 down to $158.

The move highlights the ongoing pressure on DeFi governance tokens amid broader market volatility. Large institutional or whale positions shifting away from AAVE toward Ethereum staking derivatives and Bitcoin exposure suggests a strategic reallocation rather than panic selling, though the timing raises questions about sentiment in the lending protocol space. Traders are closely monitoring whether this level holds or if further selling pressure emerges.