AAVE drops 10.57% over the past week amid new developments in DeFi protocols
- AAVE dropped 10.57% in 7 days to $165.76 by Dec 1, 2025, with 46.18% annual decline amid bearish DeFi trends. - 1inch's Aqua protocol enables shared liquidity across strategies without custody loss, boosting capital efficiency for DeFi providers. - WISeSat's satellite launch and Securitize's EU approval highlight blockchain's expanding role in space tech and institutional finance. - Innovations like Aqua and tokenized securities infrastructure signal DeFi's long-term evolution despite current price press
AAVE Faces Significant Price Drop Amid DeFi Market Shifts
AAVE has experienced a notable downturn, falling by 10.57% over the past week to reach $165.76 as of December 1, 2025. In the last 24 hours alone, the token declined by 6.33%, contributing to a monthly loss of 6.33% and a sharp 46.18% decrease over the past year. These declines come as the decentralized finance (DeFi) sector reacts to major updates from leading protocols, including a major liquidity innovation from 1inch. Current market trends indicate that AAVE may continue to face downward pressure in the near future.
1inch Introduces Aqua: A New Era for DeFi Liquidity
1inch has launched Aqua, a cutting-edge liquidity protocol that enables DeFi platforms to utilize a unified pool of capital across multiple strategies, all while maintaining user control over their assets. This “shared liquidity layer” allows individuals to allocate the same funds to several trading strategies at once.
Previously, liquidity providers needed to lock their assets into specific smart contracts, which limited how efficiently their capital could be used. With Aqua, tokens remain in the user’s wallet, and are only accessed by strategies when trades are executed. This approach could greatly improve capital efficiency for both market makers and liquidity providers.
The protocol allows users to grant permission for their tokens to be used in various strategies, such as automated market makers (AMMs), stable swap pools, or custom trading logic. Each strategy is governed by its own rules and access restrictions, managed through Aqua’s internal accounting system.
1inch has released the Aqua SDK, libraries, and documentation on GitHub, and a full-featured frontend is expected in early 2026. This development could reshape how liquidity is managed in DeFi and may have a lasting impact on AAVE’s market performance by boosting overall capital efficiency in the sector.
Advances in Satellite Technology and Blockchain Integration
WISeSat, a subsidiary of WISeKey, has successfully deployed a new satellite via a SpaceX launch. This addition to WISeSat’s satellite network will enhance real-time, energy-efficient IoT and cybersecurity services, marking a significant advancement in global communications security.
The satellite is equipped with advanced technologies, including software-defined radio (SDR) and high-speed data transmission capabilities, making it well-suited for critical applications. This launch reflects a broader trend of merging blockchain and IoT technologies to create secure, decentralized communication networks.
Although this development does not directly influence AAVE’s price, it highlights the growing overlap between space technology and blockchain infrastructure, which could have far-reaching effects on DeFi and digital asset management in the future.
Securitize Receives EU Approval for Tokenized Securities Platform
Securitize, a leader in asset tokenization, has secured full regulatory clearance to launch a digital trading and settlement platform within the European Union. The company plans to operate on the Avalanche blockchain, taking advantage of its rapid transaction finality and customizable chain support.
This regulatory approval makes Securitize the only company authorized to run tokenized securities infrastructure in both the EU and the United States. The platform will enable the issuance and trading of tokenized financial products, including debt, equities, and investment funds, across both regions.
With the tokenized asset market expected to reach trillions of dollars, Securitize’s expansion into Europe marks a pivotal moment for blockchain-based finance. While this milestone does not have an immediate effect on AAVE’s valuation, it underscores the increasing institutional embrace of blockchain technology, which could shape the future of DeFi markets.
Summary
Despite recent breakthroughs in liquidity protocols and tokenization platforms, AAVE continues to face downward momentum, as evidenced by its 10.57% weekly decline. These price movements mirror broader trends in the DeFi sector and reflect current investor attitudes. As protocols like 1inch roll out innovative solutions focused on maximizing capital efficiency and user autonomy, the DeFi landscape is evolving. While these advancements may not provide an instant boost to AAVE’s price, they lay the groundwork for future growth and long-term value creation for AAVE and other DeFi assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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