Multicoin Capital Sells AAVE After $40M Paper Loss
Multicoin Capital is selling 338,005 AAVE tokens after a 55% price drop left its position, bought via Galaxy Digital OTC at a $218 average, more than $40 million underwater.
On-chain data shows Multicoin Capital has begun reducing a large AAVE holding after the token’s price fell about 55% from the fund’s average entry.
Between Oct. 13 and Nov. 25, 2025, Multicoin received 338,005 AAVE tokens from a Galaxy Digital over-the-counter wallet at an average price of roughly $218 per token. The total outlay for the position was about $73.7 million. The purchases included a block of roughly 210,000 AAVE acquired after an Oct. 11 market sell-off and a tranche of 61,637 AAVE on Nov. 25 for about $10.94 million.
At recent market prices near $97, the 338,005-token position is worth about $32.8 million, an unrealized loss of more than $40 million, or roughly 55% of the original outlay.
On-chain transfers show Multicoin moved roughly 150,000 AAVE to Galaxy Digital’s OTC wallet and to the custodian BitGo. The firm has not disclosed the total volume it plans to sell, and it is not clear whether any further sales will be executed via OTC or on spot markets.
AAVE is the native token for a major decentralized lending protocol that holds billions in total value locked. During the 2026 market cycle, bitcoin has traded back above $100,000 while many decentralized finance tokens have not matched those gains.
Multicoin Capital is an Austin-based crypto venture and hedge fund known for concentrated, high-conviction investments. The firm built its AAVE exposure last autumn and has now reduced part of that position.
Market participants are monitoring additional on-chain transfers and the method used to sell the tokens, since execution routes influence short-term price impact.
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