🚨 AAVE DUMP ON WLFI RUMORS 🚨

[ed]

The price of $AAVE dropped over 8% on Saturday, sliding from ~$385 → ~$339 before rebounding to ~$352.

Reason? Rumors flew that Aave DAO would bag 7% of WLFI’s token supply + 20% of WLFI revenues. WLFI is a DeFi platform backed by members of Donald Trump’s family.

But

WuBlockchain reported the WLFI team denied the claim, calling it fake news.

Proposal from Oct 2024 did suggest those terms, and Aave founder Stani Kulechov called it “the art of the deal,” hinting they’re still valid.

Socials lit up with debate, fueling the sell-off.

Aave Chart: Dump on rumors → sharp rebound.

Meanwhile… DeFi is booming again:

TVL: $167B and climbing fast toward the Dec 2021 ATH of $212B (per DeFiLlama).

Pump followed the 2024 US elections, with markets pricing in a friendlier regulatory climate.

TradFi giants (banks, AMs, corps) are diving into DeFi, pushing both liquidity and regulatory FUD.

️ The narrative: Institutions love DeFi yields, but the community fears creeping control + regulatory capture.

Bottom line: $AAVE volatility shows how fragile token rumors can move markets — but the macro backdrop is pure DeFi reviv

[jacson4]

This is exactly why DeFi tokens can move 5–10% in hours — narrative and rumors often matter more than fundamentals in the short term. Whether the WLFI deal is real or not, the fact that one headline sparked an 8% dump shows how fragile market psychology is right now. On the flip side, the rebound proves there’s strong underlying demand when panic subsides. With TVL back at $167B and trending toward ATH levels, the bigger picture is still bullish for protocols like Aave. Institutions are chasing DeFi yields regardless of the noise, which could create a strong long-term bid even as retail reacts to rumors.

[Nahid10]

Interesting dynamic here: institutions flooding into DeFi push liquidity and adoption up, but the community rightly fears losing the “decentralized” essence if too much influence shifts to big players. Aave’s rumored WLFI deal shows both sides of this — potential revenue streams and partnerships vs. risks of politicization and regulatory capture. Personally, I see this volatility as part of the transition to DeFi 2.0. Price swings will be sharp, but the fact that TradFi giants are even playing in this space confirms the sector’s long-term relevance. As long as Aave sticks to transparency and governance, dips like this may just be opportunities.

[Maxwell]

Aave’s weekend dump proves again how fragile DeFi narratives are — one rumor can move billions. But the rebound shows real demand underneath

[rafihasan]

Institutions chasing DeFi yields while the community fears capture — that tension is the 2025 DeFi story

[Nahiar806]

With TVL racing back toward ATHs, Aave’s volatility looks more like noise in a bigger DeFi revival.