AAVE price has climbed to $118.04, up more than 5% in 24 hours, even as governance tensions intensified within the protocol. The token’s market cap stands near $1.8 billion, while 24-hour trading volume exceeded $380 million, both up 5%.
The AAVE price increase comes as Aave Chan Initiative founder Marc Zeller published an “audit” of Aave Labs ahead of a proposed $51 million funding vote. Tokenholders are now weighing financial transparency concerns against expansion plans.
ACI Audit Questions $86M in Aave Labs Funding
Marc Zeller shared a governance post reviewing Aave Labs’ historical funding and performance. He wrote that ACI applied a framework asking, “what did you deliver, what did it cost, and what was the return.” The post argued that Aave Labs, which was cleared of charges last year by the SEC, has received about $86 million in total capitalization.
That figure includes $16.2 million from the 2017 ICO, $32.5 million from venture rounds, and $31.93 million in direct DAO payments. The audit also cited roughly $5.5 million in what it described as unapproved swap fees. Zeller questioned the absence of a public accountability report with wallet disclosures.
The post further pointed to the founding team retaining 23% of the original LEND token supply. Current AAVE holdings were described as undisclosed. These claims surfaced one day before the Snapshot vote on the “Aave Will Win” $51 million proposal.
Horizon Revenue and Swap Fee Dispute Resurface
Zeller’s review focused heavily on Horizon, Aave’s RWA market. He estimated Horizon’s total supply near $466 million. According to his analysis, 69% consisted of stablecoins and 31% of RWA collateral, largely tied to USCC.
He argued that three positions represented 59% of the pool and that idle or incentive driven capital inflated headline figures. Zeller also examined Horizon’s economics. He wrote that DAO revenue sits around $216,000, while incentives and related costs reached several million dollars.
The audit estimated about $4.2 million in Merkl incentives and additional GHO-related expenses. Zeller described a spending ratio near “$24 spent per $1 earned.” He also revisited swap fee flows tied to the aave.com interface. The post claimed partner fee revenue shifted in 2025 without a governance vote, routing 15 to 25 basis points to a Labs controlled address.
AAVE Technical Structure Supports Short-Term Bounce
Despite the governance debate, AAVE price action shows technical strength. The weekly chart indicates price interacting with a long term ascending trendline near $90. This trendline has held since the 2021 cycle low.
Price currently trades between $114 and $120. Horizontal resistance stands near $126, while major resistance levels appear at $368 and $527. Analysts note compression between rising support and $126 resistance.
Source: X
One market observer wrote that the level “could act as a solid reaction area if buyers step in.” A weekly close below $90 would shift the broader structure. However, if the price reclaims $126 with strong volume, momentum could extend toward mid-range levels.
Source: https://coinpaper.com/14913/aave-price-surges-5-despite-escalating-aave-labs-governance-tensions
