AAVE, the native token of the leading DeFi lending protocol Aave, dropped below the $100 mark on Friday after on-chain data revealed that investment firm Multicoin Capital is reducing its massive position amid over $40 million in unrealized losses. The movement, flagged by Lookonchain, has rattled investors already concerned about DeFi token weakness.
Between October 13 and November 25, 2025, Multicoin accumulated 338,005 AAVE from a Galaxy Digital OTC wallet at an average entry price of approximately $218, representing a total investment of nearly $73.7 million. With AAVE trading near $97 at the time of the alert, the position was worth only about $32.8 million, leaving a more than 50% drawdown.
On-chain sleuths spotted 150,000 AAVE (worth roughly $14.92 million at current prices) moved to a Galaxy Digital OTC wallet and to BitGo. The transfers are widely interpreted as prelude to selling, sparking fears of further downward pressure on the token. Multicoin still holds around 188,000 AAVE, indicating that the firm has not fully exited and that additional offloading could occur.
The event highlights how transparent ledgers turn large holder moves into live market events. AAVE briefly dipped below $90 earlier this week amid broader DeFi liquidity concerns and the Kelp DAO exploit. However, the token has held the $90 demand zone, with technical support clustered in the $86–$90 range. Immediate resistance lies near $110–$120, but analysts caution that sustained selling from Multicoin or negative funding rates in perpetual futures could keep prices suppressed. Broader market conditions remain choppy, with Bitcoin and major altcoins wrestling with macroeconomic uncertainty, leaving DeFi blue chips like AAVE vulnerable.
