The price of Aave token dropped by over 8% due to rumors of a different token allocation from World Liberty Financial. A proposal outlined a partnership where Aave would receive 7% of WLFI governance token’s supply and 20% of protocol revenues from Aave v3. Aave founder confirmed the proposal’s validity.

DeFi TVL exceeds $167 billion, nearing the all-time high of $212 billion from December 2021. The rise followed the 2024 US elections, anticipating a more crypto-friendly regulatory environment. Institutional involvement in DeFi, including banks and asset managers, has increased, shaping market narratives and sparking debates on regulation and traditional finance capture.

Read more at Cointelegraph: Aave Stumbles by Over 8% Following World Liberty Financial Rumors