AAVE Token Dips 2.93% Amid Market Volatility Despite Major Governance Update and V3 Launch

AAVEUSDT has seen a 2.93% decline over the past 24 hours, opening at 127.07 and currently trading at 123.35 on Binance. The recent price drop is largely attributed to broader negative sentiment across the crypto market, following Bitcoin's decline to $65,000, as well as a mild correction after AAVE's earlier rally driven by governance proposals and product developments. Specifically, the major governance update from Aave Labs to redirect all protocol revenue to the DAO treasury and the launch of Aave V3 on Mantle Network had initially boosted market interest, but the impact was tempered as traders responded to shifting risk dynamics and wider market volatility.

AAVE maintains robust trading activity, with 24-hour volume exceeding $359 million and market capitalization around $1.91 billion, ranking it among the top cryptocurrencies. The circulating supply is near 15.19 million out of a maximum of 16 million, and recent technical and fundamental developments continue to support investor confidence despite short-term price corrections.