Everyone’s asking the same question:
If AAVE is doing so well, why is the token not?
Here’s the short answer and the longer truth.
The Market Isn’t in the Mood
Bitcoin’s been flexing all year, but altcoins? Not so much.
DeFi dominance hit a 3-year low, and capital never rotated from BTC into tokens like AAVE.
So even with $56B locked and $3M weekly revenue, AAVE’s token is swimming upstream.
The Tokenomics Trap
AAVE the protocol makes money.
AAVE the token doesn’t.
Holders get:
Governance rights
Safety module staking
But no revenue share, no buybacks, no burns.
So revenue climbs, yet token value doesn’t.
It’s like a profitable company whose shareholders get… nothing.
Smart Money Saw It Coming
On-chain data doesn’t lie:
Big wallets sold heavy from August through November
Smart money balance dropped 14%
One day alone: -48k AAVE left exchanges
They knew the truth that protocol ≠ token value.
Band-Aids, Not Fixes
AAVE tried buybacks and “fee switch” proposals.
Result? A short-term pump, then another drop.
Because these aren’t structural changes rather they’re temporary patches.
The Bigger Picture
DeFi tokens across the board are underperforming: AAVE, UNI, LINK, MKR strong fundamentals, weak charts.
Meanwhile, meme coins (zero fundamentals) are pumping.
Why?
Because speculation > fundamentals right now.
What Needs to Change?
To close the gap, AAVE must:
Share revenue with stakers
Automate buybacks & burns
Make tokens matter beyond voting
Until then, expect great protocol numbers and a disconnected chart.
Bottom line:
AAVE is a beast of a protocol trapped in a weak token model thriving on-chain but bleeding on charts.
Until DeFi evolves and altcoins rotate, fundamentals alone won’t save the token.
