AAVE has suddenly fluctuated significantly in the past few hours. An on-chain whale holding a large position has just completed a substantial transaction—selling all 230,350 AAVE directly to the market in one go.

The consideration for this transaction is quite interesting: a Whale exchanged 5,869.46 stETH and 227.8 WBTC. From the structure of this transaction, it is evident that the seller is adjusting their asset allocation, moving from a single cryptocurrency to a more diversified holding.

The issue is that such large-scale sell-offs have caused significant difficulties in the current market liquidity. A drop of over $2.3 million worth of AAVE triggered an immediate chain reaction—retail investors followed suit to stop losses, and institutions also began to observe, leading to a rapid decline in AAVE's price. This is a typical example of how whale trades directly impact the liquidity of small coins.