Aave's token, AAVE, experienced a significant 64% drop to $94 as venture capitalists, including Blockchain Capital and ParaFi, offloaded their holdings, creating sell pressure. Despite this, Aave generated $142 million in annualized revenue, indicating strong underlying demand. Founders have stepped in to absorb the supply, suggesting a shift towards long-term positioning. The protocol's recent expansion, marked by the launch of AAVE V4, saw deposits surpass $10 million, driven by increased user activity and borrowing demand. This necessitated raising deposit limits to accommodate the inflow of capital. Aave's Total Value Locked (TVL) stands at $25.38 billion, with a 70% utilization rate, reflecting active liquidity use. However, the token's price remains contingent on improved value capture.