Aave has fallen sharply during the latest market downturn despite ongoing growth in real-world-asset (RWA) initiatives within its ecosystem. The token slid about 8 percent amid broad crypto weakness, underscoring that strong protocol fundamentals do not always protect against market risk events. On the RWA front Aave has recorded increased activity, but investor sentiment remained brittle as macroeconomic concerns weighed on DeFi. The drop happened even though the protocol’s RWA marketplace continues to show value inflows and adoption. Analysts suggest that the timing reflects a rotation away from DeFi toward more established layer-1 networks or Bitcoin. For now traders using Binance Square should monitor whether Aave can reclaim key support or will continue to lag while the DeFi sector resets.