Aave Founder Increases Stake to 84K AAVE Amid DAO Governance Fight and Market Sell-off
Aave founder Stani Kulechov has accumulated 84,033 AAVE (roughly $12.6M spent over a week), including a fresh purchase of 32,660 AAVE (~$5.15M) on Dec. 23 at an average price near $158. The aggregated position carries an average cost around $176 and currently shows an unrealized loss of roughly $2.2M–$2.3M at prevailing prices (~$153–$154). The buys come amid a heated governance dispute after a December integration routed swap fees to Aave Labs wallets instead of the DAO treasury, triggering heavy selling: AAVE fell about 18% over the week, lost over $500M in market value, saw more than 980 on-chain holders drop in a day, and experienced a sharp decline in trading activity per on-chain trackers. Aave Labs submitted a divisive Snapshot vote (Dec. 23–26) on brand ownership, which markets view as having low odds of passing. Short-term risks include continued whale selling, governance uncertainty between Aave Labs and the DAO, and degraded liquidity and trading volumes. Kulechov’s purchases provide a high-profile signal of founder conviction but do not resolve the underlying dispute; traders should monitor large wallet flows, Snapshot vote results, holder counts, and on-chain activity metrics for near-term price direction. Key metrics: 32,660 AAVE latest buy (~1,699 ETH / ~$5.15M), total wallet holding 84,033 AAVE, avg buy price ~ $157.78 for last tranche, position avg cost ~ $176, unrealized loss ~ $2.2M–$2.3M, AAVE price drop ~15–18% over the week.
Bearish
The net market impact is bearish for AAVE. The factors pushing price downward include a high-profile governance dispute that rerouted protocol fees to Aave Labs, triggering broad selling and a sharp drop in liquidity and on-chain activity. Large founder buys signal conviction but have not resolved the core governance uncertainty and appear insufficient to counter sustained outflows and weak market sentiment. Short-term risks: continued whale selling, low vote certainty on Snapshot proposals, and falling trading volumes—conditions that typically amplify downside volatility and price pressure. Longer-term direction depends on whether the DAO and Aave Labs reach a clear governance and treasury resolution; a decisive settlement could stabilise or reverse losses, while prolonged conflict would likely keep downward pressure on price and liquidity.