2025-12-27 22:21:29

AAVE has experienced a significant decline this month, dropping 20% from mid-December to now. A recent issue worth pondering is whether institutional investors like ParaFi are selling off. If so, what signals might this reflect?

After the governance controversy caused a stir, the attitude of large institutions tends to be very sensitive. Selling actions usually indicate two situations: one is losing confidence in recent ecosystem developments, and the other is searching for better allocation opportunities.

From the data, this downturn is not just an AAVE problem but reflects the market digesting changes in institutional confidence. It is worth continuing to observe the subsequent capital flow.

AAVE-0,34%

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LiquidityWizard

· 8h ago

The narrative that institutions are selling off is getting old; it just seems like an excuse for the price drop. Is ParaFi really dumping? I haven't seen any on-chain data to support that. A 20% drop isn't a big deal; the main thing is to keep a steady mindset. The governance drama is indeed annoying, but it shouldn't make big institutions so anxious, right? What's going on with AAVE lately? It feels like there are no new narratives. Fund flow analysis must rely on on-chain data to be reliable; don't just listen to analysts blowing smoke. As long as the ecosystem is still building, those who buy the dip will eventually profit. Is this a shakeout? The key levels need to hold. Institutional confidence changing? Why didn't they react so sensitively during the rally? Whether to buy the dip or stay on the sidelines depends on how the on-chain funds move later.

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GasFeeCrier

· 8h ago

A 20% drop is nothing. If big institutions really start dumping, we'll just wait to buy the dip. Anyway, I'm broke too, haha. --- If ParaFi really withdraws, that would be interesting. Let's see who can hold on later. --- It's very normal for large holders to change attitude after governance turmoil. It all depends on who ends up laughing the hardest. --- Instead of pondering whether to sell or not, better to see where the bottom really is... So exhausting. --- So what if institutions dump? Retail investors buying the dip still feel pretty good. --- Is the whole market digesting confidence? I think it's digesting my wallet, haha. --- A 20% decline actually indicates someone is positioning. Otherwise, it would be even worse.

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WalletsWatcher

· 8h ago

A 20% decline is indeed quite harsh... but I think the story of ParaFi selling off might have been exaggerated. Can such a large institutional move be hidden? Institutional sell-offs usually fall into two camps: one genuinely wants to exit, and the other is actually accumulating... it's hard to say this time. The governance issues are the trigger, but AAVE's rapid decline feels like the market itself is looking for an excuse to sell off. Deeper confidence issues might be more critical. Let's see how the capital flows develop next; it might just be a shakeout before another rebound.

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