Aave exchange reserves have climbed to 2.23 million tokens, reversing a year-long downtrend as large holders move assets onto exchanges.
Whales holding between 100,000 and 1 million AAVE sold roughly 960,000 tokens since late February, signalling growing distribution across major cohorts.
“Aave has recently faced several structural challenges, pushing the protocol into a negative spiral,”
Said analyst Darkfost, highlighting declining sentiment around the project.
The rise in exchange balances, including Binance holdings increasing to 1.63 million AAVE, suggests mounting sell-side pressure in the near term.
Smaller whale cohorts have also reduced positions, while larger holders have paused accumulation, reinforcing a broader shift away from holding.
The token recently dropped to $85.05, its lowest level since the October crash, amid internal tensions and the departure of key contributors.
AAVE has since rebounded to around $95 following easing geopolitical tensions, though on-chain signals suggest further downside risk may persist.
At the time of reporting, Aave price was $95.46.