The Aave Chan Initiative (ACI), a top delegator and service provider to the Aave DAO, will wind down engagement over the next four months and move to an independent service role after Aave Labs redirected roughly $5.5M in swap fees. ACI’s exit — following the earlier departure of core contributor BGD Labs — has coincided with an almost 10% drop in AAVE price. On-chain metrics show weakened network health: TVL fell from over $36B in mid-January to $26.7B in March, and weekly revenue plunged 62% to $1.62M. Technical indicators are bearish (descending channel with resistance near $120, Aroon Down 71% vs Aroon Up 0%, MACD below zero), leaving AAVE at risk of revisiting the April 2024 low around $70 unless it breaks above $120.

ACI will wind down delegation after Aave Labs redirected about $5.5M in swap fees; ACI and prior BGD Labs departures coincided with an ~10% AAVE price drop. TVL declined from >$36B to $26.7B and weekly revenue fell 62% to $1.62M. Technicals show a descending channel (resistance ~ $120), Aroon Down 71% vs Aroon Up 0%, and MACD below zero, supporting bearish risk to the $70 level unless $120 is reclaimed.