Trump Shakes Up Crypto: AAVE’s Unexpected Surge Following Political Pivot

Political shockwaves hit DeFi as Donald Trump's crypto endorsement sends AAVE soaring.

Market Maverick Moves

The former president's unexpected embrace of digital assets triggered instant momentum across decentralized finance protocols. AAVE's lending platform saw unprecedented volume as traders positioned for regulatory shifts.

Liquidity Tsunami

Yield farmers piled into the protocol, chasing alpha while traditional finance veterans scrambled to understand the mechanics. The surge bypassed conventional banking channels entirely—no paperwork, no waiting, just pure algorithmic efficiency.

Political Calculus Meets Code

Trump's team reportedly sees crypto as both political wedge issue and fundraising goldmine. Meanwhile, DeFi degens just see green candles—because nothing says financial revolution like a billionaire politician pumping your bags.

Wall Street's watching from the sidelines again—still trying to explain to clients why they need a blockchain consultant who's half their age and twice as confident.

During the recent election cycle, President Trump forayed into a sector more lucrative than real estate. Launching his own cryptocurrency DeFi platform, Trump issued an official meme coin even before his presidential inauguration. These were captivating days, and people flocked to his tokens without questioning the U.S. President’s deep involvement with cryptocurrency. As the Trump family amassed substantial cryptocurrency holdings, curiosity arose about the correlation between Trump and the decline of AAVE Coin.

The Decline of AAVE Coin

A week after the launch of WLFI by Trump’s team, the tokens became transferable, clarifying AAVE’s position in World Liberty Financial. This clarity, however, met with dissatisfaction among investors, who began to sell off their holdings.

The price of AAVE Coin began to drop when it was denied that the project WOULD receive a 7-8% token allocation from WLFI, a claim that was heavily anticipated and later refuted by a statement given to WuBlockchain.

“The WLFI team informed WuBlockchain that the claim stating ‘Aave would receive 7% of the total WLFI token supply’ was false and a hoax. Previously, a community member had suggested AaveDAO would receive protocol fees and tokens as per a prior proposal.”

What transpired in the chart above? Initially, expectations were denied, dropping the price to $339, before it climbed above $380 and now hovers just above $350. Aave’s founder, Stani Kulechov, shared the proposal accepted by Aave DAO, stating, “The proposal created by the WLF team was approved and put to a vote.” WLF subsequently confirmed this.

Fluctuations in AAVE Coin Price

The WLFI team denies it, AAVE’s Stani affirms it, causing fluctuating prices. This situation exemplifies the volatility in cryptocurrencies influenced by news, as the gap was notably wide. Those benefiting from the initial dip later capitalized on AAVE’s refutation, thereby profiting from the subsequent rise.

AAVE is a major project in the DeFi space, and Trump’s team’s involvement is not coincidental. It is expected to continue growing in the long term. For this prominent altcoin, the $350 level is crucial, having rebounded from this base multiple times to attempt closeness to $400. If the upcoming week proceeds as expected, we might witness a surge up to $400.