AAVE outshined every crypto in the market, rising by 48% in the past month. New proposals brought to the protocol by its governance participants have kicked off the token’s rally. DeFi protocol Aave’s native token AAVE has caught the industry off guard, outperforming every top 100 crypto asset in the past four weeks. Its price has risen by over 48%. To put how impressive that is into perspective, the runner-up–Helium’s HNT–token has witnessed a price increase of 21%. AAVE’s price at the time of writing fluctuates at a little over 9. This feat has brought massive attention to the token, as it provided holders larger returns than the top two cryptos, bitcoin (BTC) and Ether (ETH). Proposals Brought to Aave Kickstart Its Rally The token’s gains come after a few proposals have been
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- AAVE outshined every crypto in the market, rising by 48% in the past month.
- New proposals brought to the protocol by its governance participants have kicked off the token’s rally.
DeFi protocol Aave’s native token AAVE has caught the industry off guard, outperforming every top 100 crypto asset in the past four weeks. Its price has risen by over 48%. To put how impressive that is into perspective, the runner-up–Helium’s HNT–token has witnessed a price increase of 21%.
AAVE’s price at the time of writing fluctuates at a little over $139. This feat has brought massive attention to the token, as it provided holders larger returns than the top two cryptos, bitcoin (BTC) and Ether (ETH).
Proposals Brought to Aave Kickstart Its Rally
The token’s gains come after a few proposals have been introduced to alter its role in the Aave protocol. Its rally started last month with a proposed fee switch recommended by Aave-Chan Initiative’s founder, Marc Zeller. The fee switch will involve distributing excess revenues to ecosystem participants, like AAVE stakers and GHO minters—GHO being the protocol’s stablecoin. Aave’s excess revenues will be used to buy back tokens from the market, increasing buying pressure when the fee switch is activated. Furthermore, the proposal has increased market engagement with the protocol and its token thanks to expectations of receiving rewards for holding and staking AAVE.
Another proposal called the Umbrella Proposal looks to shift Aave’s “seize and sell” mechanism. It uses AAVE to cover bad debt; however, it adds increased selling pressure on the token. The “seize and sell” mechanism is proposed to be replaced by the “seize and burn” mechanism, which will use Aave’s GHO and aToken alongside AAVE instead of just the native token. And that will reduce selling pressure on AAVE while covering bad debt.
Web3 native agency DeeLabs mentioned, “so few take advantage of the properties and features that being onchain provides.” It added, “that is why it’s great seeing a behemoth like Aave taking advantage of this and staying at the forefront of DeFi time and time again.”