AAVE Token Slides 5.52% Amid BGD Labs Exit and Governance Shift Despite $1B Asset Milestone

AAVEUSDT experienced a notable decline of 5.52% in the past 24 hours, with the Binance-reported price dropping from 122.83 to 116.05. The decrease can be primarily attributed to market reactions following BGD Labs’ announcement of its forthcoming departure from technical contributions to the Aave DAO after April 1, 2026, which has raised concerns regarding decentralized governance and ongoing protocol development. Additionally, recent technical analysis highlighted a prevailing downtrend for AAVE/USDT, further reinforcing bearish sentiment. Despite positive milestones such as surpassing $1 billion in real-world asset deposits and a Grayscale filing for a spot AAVE ETF, these developments have not offset the impact of shifting contributor dynamics and governance changes. Trading activity remains robust, with AAVE’s 24-hour volume near $300 million and a market capitalization around $1.9 billion, as the token consolidates within a daily range reflecting ongoing volatility.