Close Menu
maincoin.money
    What's Hot

    HBAR Price Movement Linked to Crucial Bitcoin Indicator

    October 20, 2025

    Developer Cautions That Paradigm Could Lead to Centralization Threats for Ethereum

    October 20, 2025

    Uncommon Friday CPI Data May Influence Fed’s Upcoming Decision

    October 20, 2025
    Facebook X (Twitter) Instagram
    maincoin.money
    • Home
    • Altcoins
    • Markets
    • Bitcoin
    • Blockchain
    • DeFi
    • Ethereum
    • NFTs
      • Regulation
    Facebook X (Twitter) Instagram
    maincoin.money
    Home»DeFi»Aave Drops More Than 8% Amid Speculation Surrounding World Liberty Financial
    DeFi

    Aave Drops More Than 8% Amid Speculation Surrounding World Liberty Financial

    Ethan CarterBy Ethan CarterAugust 23, 2025No Comments2 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    1755983124
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The Aave (AAVE) token’s price dropped by over 8% on Saturday due to speculation that the decentralized finance (DeFi) protocol would receive a different token distribution from World Liberty Financial (WLFI), a DeFi platform associated with members of US president Donald Trump’s family.

    “The WLFI team informed WuBlockchain that the assertion that ‘Aave will receive 7% of the total WLFI token supply’ is inaccurate and constitutes false information,” blockchain journalist Colin Wu stated, igniting discussions regarding the rumor and token distribution on social media.

    Wu referenced a WLFI community proposal from October 2024, which outlined an agreement where the Aave decentralized autonomous organization (DAO), responsible for governance of the protocol, would receive 7% of the circulating supply of the WLFI governance token and 20% of the revenues generated by the WLFI deployment on Aave v3.

    Donald Trump, Aave
    The price of Aave token declines amid rumors. Source: TradingView

    Aave founder Stani Kulechov referred to the proposal as “the art of the deal” on Saturday, and, in another post, indicated that the proposal’s terms remained valid. Following the rumors, Aave’s token price fell from approximately $385 to a low of $339 before recovering to around $352.

    Cointelegraph reached out to representatives of World Liberty Financial and Aave but had not received a response by the time of publication.

    Speculation surrounding the arrangement between Aave and World Liberty coincides with a resurgence of interest in DeFi and increasing institutional participation in the cryptocurrency sector.

    Related: $70B DeFi protocol Aave goes live on Aptos in ecosystem expansion

    The DeFi sector is gaining traction as institutions take notice

    Currently, the total value locked (TVL) in DeFi protocols exceeds $167 billion, according to DeFiLlama, approaching its all-time high of over $212 billion from December 2021.

    The DeFi TVL surged significantly following the results of the 2024 US elections, driven by expectations of a more favorable regulatory environment for cryptocurrencies in the country.

    Donald Trump, Aave
    DeFi TVL surged significantly post-2024 elections in the United States. Source: DeFiLlama

    Institutional investors such as banks, asset managers, corporations, and financial service companies are increasingly engaging with crypto and DeFi, shaping many of the narratives in the current market cycle.

    This involvement has sparked discussions within the crypto community regarding the encroachment of government regulations on permissionless protocols and the potential capture of DeFi by traditional financial institutions.

    Magazine: How Ethereum treasury companies could spark ‘DeFi Summer 2.0’