Key Takeaways
Multicoin Capital collected 338,005 AAVE at a $218 avg through Galaxy Digital OTC and is now sitting on over $40M in losses.Lookonchain flagged that Multicoin seems to be reducing its AAVE place after a 55% worth decline.AAVE’s drop to ~$97 underscores DeFi blue chips’ underperformance relative to bitcoin throughout the 2026 bull cycle.
A $73.7 Million Wager Gone Flawed
Between October 13 and November 25, 2025, Multicoin Capital acquired 338,005 AAVE tokens from a Galaxy Digital OTC pockets at a mean worth of roughly $218 per token, representing a complete outlay of round $73.7 million. The purchases have been unfold throughout a number of tranches, together with a block of 210,000 AAVE acquired after the October 11 market sell-off and an additional 61,637 AAVE on November 25 at roughly $10.94 million.
Multicoin Capital, an Austin-based crypto enterprise and hedge fund identified for high-conviction concentrated bets, was constructing AAVE publicity as a part of a broader decentralized finance ( DeFi) thesis. On the time, the buildup learn as a assured institutional dip-buy, a well-capitalized fund choosing up a DeFi blue chip at what gave the impression to be depressed costs.
AAVE is at present buying and selling close to $97, down sharply from the $218 common entry. At present costs, Multicoin’s 338,005-token place is value roughly $32.8 million, implying an unrealized lack of over $40 million, or roughly 55% of the unique outlay.
Multicoin now seems to be promoting to chop losses, however the precise whole quantity being offloaded continues to be unknown.
DeFi Blue Chips Below Strain
Whereas bitcoin has reclaimed ranges above $100,000 in 2026, many DeFi tokens have did not preserve tempo. AAVE, which powers one of many largest decentralized lending protocols with billions in whole worth locked (TVL), has not benefited proportionally from the bitcoin-led cycle.
Moreover, Multicoin’s place illustrates the structural danger of huge OTC accumulation in comparatively skinny altcoin markets. Galaxy Digital’s OTC desk facilitated the unique purchases, a typical institutional route for constructing dimension with out shifting spot costs, however the association gives no safety in opposition to extended underperformance of the underlying asset.
If Multicoin proceeds with a full or partial exit, the added promote strain may weigh additional on AAVE within the close to time period, notably if the agency unwinds at market fairly than by way of one other OTC association.
