AAVE Declines by 0.48% as Acquisition and DeFi Growth Unfold

As of October 24, 2025,

(AAVE) experienced a 0.48% decline over the past 24 hours, settling at $227.84, based on the latest market figures. Over the previous week, Aave saw a 2.43% gain, but over the past month, it dropped by 16.96%. On a yearly basis, the token is down 26.22%. These price shifts highlight a mix of investor reactions amid ongoing strategic changes and broader market trends.

Aave Labs has made a significant move to strengthen its presence among institutional clients by acquiring Stable Finance, a company recognized for its onchain savings application. This acquisition broadens Aave’s DeFi offerings for consumers and fits with its long-term vision to introduce more institutional-level credit products to decentralized finance.

By integrating Stable Finance’s onchain savings solution into the Aave ecosystem, retail users are expected to gain wider access to stablecoin yield opportunities. The Stable Finance app, which enables users to earn returns on both crypto and fiat through stablecoin strategies, will be gradually discontinued in favor of Aave’s consolidated platform. This transition highlights Aave’s commitment to streamlining user interactions while retaining technical sophistication.

With this deal, Stable Finance’s founder, Mario Baxter Cabrera, will join Aave Labs as Director of Product. His team will help develop new products aimed at consumers, supporting Aave’s goal of making DeFi simpler and more approachable. The acquisition also signals Aave’s intent to diversify its collateral options and move beyond traditional crypto assets into more structured credit products.

This strategic acquisition comes after Aave’s recent collaboration with

, which brought a yield-generating version of to Aave’s Plasma market as collateral. This step represents a new direction for Aave, as it now accepts assets backed by institutional loans. The Plasma market currently features Aave syrupUSDT, a stablecoin supported by real-world institutional credit, which can be used as collateral but as a borrowable asset. This innovation introduces greater stability and diversity to Aave’s platform.

Technical analysis indicates that Aave is currently in a consolidation phase after recent price swings. Although the short-term decline is slight, the broader monthly and yearly trends point to a bearish outlook. Experts anticipate continued price fluctuations in the near future as the market responds to Aave’s institutional initiatives and the evolving DeFi sector.

Backtest Hypothesis

Aave Labs’ acquisition of Stable Finance took place just a day before the current date (2025-10-24). Because of this, the event-driven backtesting tool does not yet have enough post-announcement price data to generate meaningful return or drawdown metrics. At present, there is only a single closing price available after the news, making it impossible to define a return period.

To overcome this data limitation, there are two immediate approaches:

1. Short-Term Price Reaction Assessment: Manually calculating the 1-day price change (from the close on 2025-10-23 to the close on 2025-10-24) can offer an initial look at how the market responded to the acquisition news. While this method is limited, it provides a quick gauge of investor sentiment.

2. Postponed Backtesting: A more thorough analysis can be conducted after a waiting period (such as 10 or 30 days) to allow for more price data to accumulate. With additional data, the backtesting tool can evaluate average returns over 5, 10, or 20 days and help identify optimal holding periods.

Combining both strategies—performing the immediate short-term analysis and scheduling a comprehensive backtest after more data is available—can yield a fuller picture of the event’s market impact. These insights can help investors and analysts adjust their strategies as Aave’s institutional integration progresses and the DeFi landscape continues to change.