Governance Turmoil Hits DeFi—But Why Is CRV Price Rising and AAVE Price Plunging?

The post Governance Turmoil Hits DeFi—But Why Is CRV Price Rising and AAVE Price Plunging? appeared first on Coinpedia Fintech News

The DeFi space has entered a crucial phase wherein the two popular platforms are facing governance issues. Curve DAO and Aave, both protocols, have entered an active dispute over the revenue share. As a result, the AAVE price has come under selling pressure, while the CRV price has maintained a substantial ascending trend. In times when the traders are dealing with these tokens differently, the impact on the prices of the cryptos needs to be closely watched. 

Governance stress exists in both, but it’s not the same kind

At first glance, Curve and Aave appear to be facing a similar problem: disagreements between token holders and core contributors. Dig deeper, and the nature of that friction diverges sharply.

In the case of Curve DAO, recent governance debate has focused on developer funding, treasury transparency, and DAO oversight. These discussions are messy but familiar in mature DAOs. Importantly, they do not threaten Curve’s core economic engine—stablecoin liquidity, trading volumes, and fee generation remain intact.

By contrast, Aave is dealing with a governance dispute that touches the most sensitive area possible: revenue ownership and control. Questions around where protocol-linked fees flow, who controls key assets, and how decisions are pushed through governance have raised concerns about alignment between the DAO and the core development entity.

Markets tend to tolerate procedural noise. They react far more aggressively when economic clarity is questioned.

Why Markets Are Treating CRV and AAVE Very Differently

Despite both protocols facing governance tension, traders are reacting to price behavior at key levels, not just headlines. AAVE is trading near $151.44, down 4.79% in the last 24 hours, and price action remains heavy. Each intraday bounce has failed to hold, signaling that sellers are using rallies to exit rather than build positions. This keeps AAVE locked in a short-term distribution phase.

By contrast, CRV is holding around $0.3688, up a modest 0.9% on the day. While the move is not explosive, the key difference is stability. CRV has avoided sharp sell-offs and is consolidating rather than breaking down, suggesting supply is being absorbed near current levels.

Both tokens are experiencing diverse price action, and hence, it would be interesting to watch how the upcoming price action could unfold.

Bottom Line!

The divergence between AAVE and CRV makes one point clear: markets are no longer reacting to governance headlines alone but to the quality of the risk behind them. Procedural debate is being tolerated, while uncertainty around revenue control is being priced aggressively. Until clarity improves, AAVE is likely to remain under pressure, while CRV’s ability to stabilize will depend on whether governance noise stays contained and protocol activity remains intact.