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Aave Governance Rift Erases $500M as Whales Accumulate and Fundamentals Hold

On-chain data points to whale accumulation following Aave Labs’ signal to share non-core revenue.

Overview

  • Santiment attributes roughly $500 million in AAVE market-value losses to a DAO–Aave Labs conflict over revenue sharing, governance, and brand/IP control that included a failed brand-transfer vote.
  • Aave deposits rose about 60% year over year and weekly revenues are projected to hit record 2025 levels, according to Santiment.
  • The share of AAVE held by the top 100 addresses climbed from approximately 72% to 80% as large holders, including reports of founder Stani Kulechov, bought the dip.
  • Santiment noted rising balances in million‑dollar‑plus wallets and withdrawals from exchanges, indicating a potential supply squeeze.
  • Market sentiment turned positive in early January after the revenue-sharing signal, while network activity stayed steady with spikes in daily active addresses near the late‑December lows.