Circle Ventures, the investment arm of stablecoin issuer Circle, announced on July 23 that it is actively purchasing $AAVE, the native governance token of the leading DeFi lending protocol Aave. The move directly supports the recently emerged 'DeFi United' community movement, which aims to unite the decentralized finance ecosystem after Aave faced a major bad debt crisis.
Circle: 'Strong DeFi infrastructure doesn't build itself'
In an official statement on social media, Circle wrote: 'Circle Ventures is buying $AAVE tokens because strong DeFi infrastructure doesn't build itself. Aave is helping to shape the future of onchain finance, and we are all-in on supporting the ecosystem and the entire community built around it.' The post was tagged with #DeFi United. Aave's official account promptly replied with 'DeFi United' in the comments.
Market reaction: AAVE jumps 3.6% on institutional backing
The news triggered immediate buying pressure. According to market data, AAVE's price surged 3.6% to $98.95, briefly approaching the psychologically important $100 level. Circle, being the issuer of the largest regulated stablecoin USDC, carries significant weight in the crypto space, and its overt token purchase is seen as a strong signal of confidence in DeFi infrastructure.
DeFi United context: Aave's bad debt crisis sparked industry coordination
Circle's entry comes amid ongoing industry efforts to rescue Aave from a nearly $200 million bad debt situation. The DeFi United campaign had previously involved discussions among protocols on whether to spread losses across all chains or isolate them on L2. Circle's financial backing adds institutional credibility to the grassroots movement and highlights the collaborative nature of the DeFi ecosystem.