{"id":72567,"date":"2026-05-15T15:13:41","date_gmt":"2026-05-15T15:13:41","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/firm-spotted-dumping-aave-after-brutal-55-drawdown\/"},"modified":"2026-05-15T15:13:41","modified_gmt":"2026-05-15T15:13:41","slug":"firm-spotted-dumping-aave-after-brutal-55-drawdown","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/firm-spotted-dumping-aave-after-brutal-55-drawdown\/","title":{"rendered":"Firm Spotted Dumping AAVE After Brutal 55% Drawdown"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p><span style=\"font-weight:400\"><\/p>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Multicoin Capital accumulated 338,005 AAVE at a $218 avg via Galaxy Digital OTC and is now sitting on over $40M in losses.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Lookonchain flagged that Multicoin appears to be cutting its AAVE position after a 55% price decline.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">AAVE\u2019s drop to ~$97 underscores DeFi blue chips\u2019 underperformance relative to bitcoin during the 2026 bull cycle.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p><\/span><\/p>\n<h2><span style=\"font-weight:400\">A $73.7 Million Bet Gone Wrong<\/span><\/h2>\n<p><span style=\"font-weight:400\">Between October 13 and November 25, 2025, Multicoin Capital received 338,005 AAVE tokens from a Galaxy Digital OTC wallet at an average price of approximately $218 per token, representing a total outlay of around $73.7 million. The purchases were spread across several tranches, including a block of 210,000 AAVE acquired after the October 11 market sell-off and a further 61,637 AAVE on November 25 at approximately $10.94 million.<\/span><\/p>\n<figure id=\"attachment_814295\" aria-describedby=\"caption-attachment-814295\" style=\"width:1666px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-814295\" class=\"wp-caption-text\">Multicoin Capital has transferred 150,000 AAVE to Galaxy Digital OTC wallet and BitGo, per Arkham<\/figcaption><\/figure>\n<p><span style=\"font-weight:400\">Multicoin Capital, an Austin-based <span>crypto<\/span> venture and hedge fund known for high-conviction concentrated bets, was building AAVE exposure as part of a broader <span>decentralized finance<\/span> ( <span>DeFi<\/span>) thesis. At the time, the accumulation read as a confident institutional dip-buy, a well-capitalized fund picking up a <span>DeFi<\/span> blue chip at what appeared to be depressed prices.<\/span><\/p>\n<p><span style=\"font-weight:400\">AAVE is currently trading near $97, down sharply from the $218 average entry. At current prices, Multicoin\u2019s 338,005-token position is worth approximately $32.8 million, implying an unrealized loss of over $40 million, or roughly 55% of the original outlay.<\/span><\/p>\n<p><span style=\"font-weight:400\">Multicoin now appears to be selling to cut losses, but the exact total <span>volume<\/span> being offloaded is still unknown. <\/span><\/p>\n<h2><span style=\"font-weight:400\"> <span>DeFi<\/span> Blue Chips Under Pressure<\/span><\/h2>\n<p><span style=\"font-weight:400\">While <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> has reclaimed levels above $100,000 in 2026, many <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-defi-decentralized-finance\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">DeFi<\/a> tokens have failed to keep pace. AAVE, which powers one of the largest decentralized lending protocols with billions in total value locked (TVL), has not benefited proportionally from the bitcoin-led cycle.<\/span><\/p>\n<p><span style=\"font-weight:400\">Furthermore, Multicoin\u2019s position illustrates the structural risk of large OTC accumulation in relatively thin <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-altcoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">altcoin<\/a> markets. Galaxy Digital\u2019s <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-bitcoin-otc-trading\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">OTC desk<\/a> facilitated the original purchases, a standard institutional route for building size without moving spot prices, but the arrangement offers no protection against prolonged underperformance of the underlying asset.<\/span><\/p>\n<p><span style=\"font-weight:400\">If Multicoin proceeds with a full or partial exit, the added sell pressure could weigh further on AAVE in the near term, particularly if the firm unwinds at market rather than through another OTC arrangement. <\/span><\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/multicoin-capital-aave-loss-galaxy-digital-2026\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Multicoin Capital accumulated 338,005 AAVE at a $218 avg via Galaxy Digital OTC and is now sitting on over $40M in losses. Lookonchain flagged that Multicoin appears to be cutting its AAVE position after a 55% price decline. AAVE\u2019s drop to ~$97 underscores DeFi blue chips\u2019 [&hellip;]<\/p>\n","protected":false},"author":3947362404,"featured_media":72568,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72567"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362404"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=72567"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72567\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/72568"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=72567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=72567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=72567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}