Firm Spotted Dumping AAVE After Brutal 55% Drawdown
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’s drop to ~$97 underscores DeFi blue chips’ underperformance relative to bitcoin during the 2026 bull cycle.
A $73.7 Million Bet Gone Wrong
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.
Multicoin Capital, an Austin-based crypto venture and hedge fund known for high-conviction concentrated bets, was building AAVE exposure as part of a broader decentralized finance ( DeFi) thesis. At the time, the accumulation read as a confident institutional dip-buy, a well-capitalized fund picking up a DeFi blue chip at what appeared to be depressed prices.
AAVE is currently trading near $97, down sharply from the $218 average entry. At current prices, Multicoin’s 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.
Multicoin now appears to be selling to cut losses, but the exact total volume being offloaded is still unknown.
DeFi Blue Chips Under Pressure
While bitcoin has reclaimed levels above $100,000 in 2026, many DeFi 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.
Furthermore, Multicoin’s position illustrates the structural risk of large OTC accumulation in relatively thin altcoin markets. Galaxy Digital’s OTC desk 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.
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.
