AAVE Price Plummets 75% From Peak: Exchange Inflows Spike, What's Next?
AAVE has seen a dramatic 75% price drop from its August peak, with significant exchange inflows and rising supply on exchanges suggesting distribution by large holders. This sharp decline and on-chain activity could impact trading volumes and spreads for P2P merchants dealing in stablecoins.
Aave (AAVE) is currently trading around $91, a stark 75% decrease from its August 2025 high. This significant price correction has brought the altcoin to retest long-term support levels. On-chain data from Santiment reveals a notable spike in AAVE exchange inflows over the past two days, marking the largest cluster since March 2026. This surge in inflows coincided with the recent sell-off from $112 to $90, indicating that holders may be moving assets to exchanges for liquidation.
Furthermore, the supply of AAVE on exchanges has been steadily increasing since early April. Initially, this rise in exchange supply accompanied price increases, but it has since accelerated as the price declined. This pattern suggests that larger holders might be actively distributing their AAVE holdings, either selling into strength or offloading as the price breaks down. A bearish outlook would only be challenged if exchange supply begins to decrease and daily inflows cool off.
While the on-chain metrics present a bearish picture, the weekly chart offers a contrasting signal. AAVE has formed a long-term double top pattern, with peaks near $380 in December 2024 and $360 in August 2025. Despite the significant drop from these highs, the token is now within the May green support zone. The weekly chart also shows a broken descending trendline from the August peak, accompanied by a parallel volume trendline breakout, hinting at potential buyer engagement. However, the momentum is not yet decisive, with the RSI leaning bearish and the weekly MACD awaiting a confirmed bullish cross.
For P2P trading merchants, this volatility in a prominent altcoin like AAVE, even if not directly a stablecoin, can create ripple effects. Increased price swings in major altcoins can lead to higher demand for stablecoins as traders seek to hedge or reposition. This could translate to increased order volume on Binance P2P and Bybit P2P, potentially widening spreads as merchants adjust to the heightened risk and demand. The ongoing price action and on-chain signals will be crucial to monitor for any sustained trend shifts that could influence trading strategies.