AAVE (Aave) fell by 9.39% in 24 hours, with a 24-hour volume of $540 million.

Gate News Bot news, on December 22, according to CoinMarketCap data, as of the time of writing, AAVE (Aave) is currently priced at 160.78 USD, falling 9.39% in the last 24 hours, with a high of 196.27 USD and a low of 158.00 USD. The 24-hour volume reached 540 million USD. The current market capitalization is approximately 2.461 billion USD, ranking 34th, down 255 million USD from yesterday.

Aave is a decentralized non-custodial liquidity protocol where users can participate as suppliers or borrowers. Suppliers earn interest by providing liquidity to the market, while borrowers can obtain liquidity by offering collateral that exceeds the borrowed amount. The AAVE token is central to the governance of the Aave protocol, allowing holders to vote on the outcomes of Aave Improvement Proposals (AIPs). Additionally, AAVE can be staked in the protocol's security module to provide protection in case of shortfall events and receive corresponding incentives.

Aave has processed hundreds of billions of dollars in transactions across more than 12 networks, setting a benchmark in the DeFi space with its robust security, reliability, and risk management standards. The protocol code has been publicly audited and certified by several top security firms, while also maintaining a continuous bug bounty program to ensure system security.

Recent Important News about AAVE:

1️⃣ Governance income disputes lead to wavering confidence among large holders Aave Labs has recently adjusted the swap routing direction of the protocol's frontend, switching from ParaSwap to Cow Swap. This move has led to approximately $200,000 in weekly swap fees flowing to the development team instead of the DAO treasury, resulting in an annual flow difference of over $1 million. This action has sparked widespread controversy in the community regarding the ownership of protocol revenues, with major holders increasingly concerned about governance transparency and decision-making processes. The second largest AAVE holder of the protocol has subsequently sold off 230,000 tokens (approximately $38 million) at an average price of only $165, resulting in a loss of over $13 million compared to an average cost of $223.4 from the end of last year to the beginning of this year, directly exacerbating downward market pressure.

2️⃣ The proposal for decentralized brand assets triggers a market repricing Former Aave Chief Technology Officer Ernesto Boado proposed a governance proposal to fully transfer control of brand assets, including domain names, social accounts, and naming rights, to AAVE token holders, managed by a DAO-controlled entity. Although this initiative aims to strengthen the decentralization of the protocol, the market interprets it as a limitation on the future appreciation potential of brand assets, prompting investors to reassess the protocol's value appreciation space. The AAVE community has initiated related ARFC proposal voting on the Snapshot platform on December 23, with the voting period ending on December 26. The final result of this governance event will directly affect the market's positioning of the value of AAVE tokens.

3️⃣ Regulatory benefits offset by governance risks The U.S. Securities and Exchange Commission has completed a four-year investigation into the Aave protocol, and this regulatory breakthrough eliminates uncertainty in the DeFi space, creating a more favorable policy environment for Aave's long-term development. However, the governance disputes and selling pressure from large holders that erupted during the same period completely offset this positive effect, reflecting that the market's concern over recent internal governance issues is significantly higher than the attention given to the alleviation of external regulatory risks.

This message is not to be taken as investment advice; investors should be aware of market volatility risks.