The amount of AAVE tokens held in reserve for trading has jumped to 2.23 million, suggesting a possible increase in selling and reflecting growing concerns about the Aave protocol’s future.
Data from CryptoQuant reveals that the amount of AAVE held on cryptocurrency exchanges has been consistently increasing since early February, starting around 2.07 million tokens. Currently, Binance holds the majority – approximately 1.63 million AAVE tokens – of this total.
This recent turnaround has brought reserves back up, exceeding their average level over the past 90 days. This marks the end of a long period of decreasing reserves that began in April 2025.
This rise in concern comes as investors and those involved with the Aave protocol are becoming increasingly worried. Aave, a leading platform for decentralized lending, is currently facing several difficulties internally.
Recently, several important players have left the Aave protocol. This includes Chaos Labs, a risk management firm, which stated they disagreed with the overall risk approach. The new, more complex V4 upgrade and worries about Aave’s long-term financial health also contributed to these departures.
Following the recent exits of BGD Labs and the Aave Chan Initiative, concerns are growing about whether the project can continue to operate smoothly and maintain stable leadership at this important time.
Aave fundamentals remain strong despite chaos
Despite recent challenges, Aave continues to perform well based on key data. A report for March 2026 showed that the total value locked in the protocol reached $42.34 billion, a significant 45% increase compared to the same time last year, although it experienced a small decrease from the previous month.
The protocol continued to lead the DeFi lending market, holding a strong 59.79% share. Its stablecoin, GHO, recently surpassed $500 million in value for the first time, driven by consistent use and the launch of Aave V4 on Ethereum in late March.
Version 4 features a new, flexible system built around a central hub with connected components. This design aims to make better use of funds, limit potential risks, and enable features like lending against real-world assets. However, the upgrade has also sparked discussions within the team about how to best manage risk levels and reward contributors.
The price of AAVE has recently decreased. It’s currently around $87, down 10% over the past day, likely due to general caution in the altcoin market and some investors selling to take profits.
When a cryptocurrency’s reserves increase, it often leads to a drop in price, especially if major holders are selling. Now, traders and analysts are watching to see if this recent increase in reserves will cause Aave’s price to fall, or if the token’s strong performance – including consistent profits and growing interest from institutions – will be enough to keep it stable.
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2026-04-07 15:49