AAVE - -27.07% in 1 Month Amid Whale Liquidations

On NOV 23 2025, AAVE dropped by 0.5% within 24 hours to reach $167.46, AAVE dropped by 6.57% within 7 days, dropped by 27.07% within 1 month, and dropped by 46.05% within 1 year.

Whale Liquidations Expose Weakness in Aave Positions

Crypto whales have faced massive liquidations on Aave platforms, with losses exceeding $11.41 million on Aave alone. The liquidation figures highlight the growing fragility within leveraged positions, especially as market volatility increases. The pressure on Aave borrowers stems from a combination of rising interest rates and declining collateral values, both of which have accelerated in recent weeks.

These liquidations are not isolated incidents. Multiple high-value accounts have seen significant portions of their holdings wiped out overnight, indicating a broader trend of forced deleveraging.

The drop in Aave’s token price reflects this instability, with the -27.07% monthly decline marking one of the most severe corrections since the market downturn began.

Market Pressure Exacerbates Liquidity Challenges

The ongoing liquidations have placed further strain on Aave’s liquidity pools, particularly for high-yield strategies that rely on stable collateral ratios. With token prices continuing to slide, many protocols are now facing tighter collateral requirements, triggering more cascading liquidations.

Lenders and borrowers on the platform are reassessing risk exposure in real time, with many opting to reduce leverage or convert assets to more stable equivalents. This shift has slowed the velocity of new borrowing activity, compounding the downward pressure on Aave’s token price and its ecosystem-wide impact.

Aave Ecosystem Struggles to Absorb Market Shock

The liquidation wave has underscored the interconnectivity between DeFi protocols and the broader crypto market. As Aave serves as a critical infrastructure layer for many DeFi strategies, its performance is closely tied to the health of the wider ecosystem.

While Aave’s underlying technology and governance model remain intact, the platform is currently grappling with the fallout of market conditions. Analysts project that further price declines could trigger additional rounds of liquidations if recovery efforts stall. The key challenge now is to stabilize borrower confidence and restore liquidity without imposing excessive restrictions that could hinder protocol usage.

Path Forward Remains Uncertain

The liquidation trend on Aave underscores the risks of high-leverage positions in a down market, particularly for large players. While short-term volatility is expected to persist, the long-term sustainability of Aave will depend on how effectively the platform can adapt to changing conditions.

With token holders closely watching the situation, any signs of systemic stress within Aave could trigger a broader flight to safety across DeFi platforms. The next several weeks will be crucial in determining whether the market can stabilize or if further corrections are on the horizon.