Multicoin’s DeFi Disaster: Firm Spotted Dumping AAVE After Brutal 55% Drawdown

4 weeks ago

Onchain information shows Multicoin Capital is present much than $40 cardinal underwater connected a ample AAVE presumption built done Galaxy Digital’s over-the-counter (OTC) desk. The steadfast present appears to beryllium selling.

Key Takeaways

Multicoin Capital accumulated 338,005 AAVE astatine a $218 avg via Galaxy Digital OTC and is present sitting connected implicit $40M successful losses.
Lookonchain flagged that Multicoin appears to beryllium cutting its AAVE presumption aft a 55% terms decline.
AAVE’s driblet to ~$97 underscores DeFi bluish chips’ underperformance comparative to bitcoin during the 2026 bull cycle.

A $73.7 Million Bet Gone Wrong

Between October 13 and November 25, 2025, Multicoin Capital received 338,005 AAVE tokens from a Galaxy Digital OTC wallet astatine an mean terms of astir $218 per token, representing a full outlay of astir $73.7 million. The purchases were dispersed crossed respective tranches, including a artifact of 210,000 AAVE acquired aft the October 11 marketplace sell-off and a further 61,637 AAVE connected November 25 astatine astir $10.94 million.

Multicoin Capital, an Austin-based crypto task and hedge money known for high-conviction concentrated bets, was gathering AAVE vulnerability arsenic portion of a broader decentralized finance ( DeFi) thesis. At the time, the accumulation work arsenic a assured organization dip-buy, a well-capitalized money picking up a DeFi bluish spot astatine what appeared to beryllium depressed prices.

AAVE is presently trading adjacent $97, down sharply from the $218 mean entry. At existent prices, Multicoin’s 338,005-token presumption is worthy astir $32.8 million, implying an unrealized nonaccomplishment of implicit $40 million, oregon astir 55% of the archetypal outlay.

Multicoin present appears to beryllium selling to chopped losses, but the nonstop full volume being offloaded is inactive unknown.

DeFi Blue Chips Under Pressure

While bitcoin has reclaimed levels supra $100,000 successful 2026, galore DeFi tokens person failed to support pace. AAVE, which powers 1 of the largest decentralized lending protocols with billions successful full worth locked (TVL), has not benefited proportionally from the bitcoin-led cycle.

Furthermore, Multicoin’s presumption illustrates the structural hazard of ample OTC accumulation successful comparatively bladed altcoin markets. Galaxy Digital’s OTC desk facilitated the archetypal purchases, a modular organization way for gathering size without moving spot prices, but the statement offers nary extortion against prolonged underperformance of the underlying asset.

If Multicoin proceeds with a afloat oregon partial exit, the added merchantability unit could measurement further connected AAVE successful the adjacent term, peculiarly if the steadfast unwinds astatine marketplace alternatively than done different OTC arrangement.

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