Ethereum
Why is Aave coin price skyrocketing today?
AAVE, the native cryptocurrency of Ethereum-based decentralized custody platform Aave, has seen a strong rally, surging above $100 today. At press time, the AAVE coin price was trading up 12% at $100.27 with a market cap of $1.49 billion.
Why is Aave coin price skyrocketing?
According to the latest report, the governance proposal was the main reason behind the AAVE surgeThis governance proposal plans to bring a fee change as well as a token buyback program.
Mark Zeller, founder of the Aave-Chan initiative, explained that the AAVE fee change proposal plans to make a major change to the Aave ProtocolThe revenue model of . This will introduce a mechanism to collect transaction fees by using the funds to repurchase AAVE tokens on the open market.
Taking advantage of the introduction of Umbrella,
It’s time to upgrade the $AAVE role in our ecosystem.
Let’s explore this together:https://t.co/70z1jD2pjf pic.twitter.com/He7XPyzkT0
— Marc “Billy” Zeller 👻 🦇🔊 (@lemiscate) July 25, 2024
If Aave implements this governance proposal, it could generate over $60 million in annual revenue for AAVE holders. According to data from DefiLlama
The Aave protocol currently has over $12.869 billion in total value locked.
Alongside the rise of the Aave PriceNetwork activity on the Aave protocol has also increased significantly.
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Will the AAVE price surge continue?
If the bulls manage to keep the Aave Coin price above $100, there is a high chance that the price rally will continue to $110 and then to $130 in the medium term. Amid the current rally, AAVE has recovered the losses from last week and is up 10.51% over the past month.
The good news is that the Aave Coin price is trading above the 200-day moving average, which indicates favorable growth potential. Moreover, the AAVE altcoin is enjoying strong support from the cryptocurrency exchange Coinbase which added Aave perpetual futures contracts, bringing a strong liquidity boost to the cryptocurrency.
Over the past 24 hours, AAVE trading volume has increased by 65% and is currently around $216 million. Additionally, Aave’s annual inflation rate has reached a low of 2.29%, which could lead to a decrease in the circulating supply on the market. As a result, market analysts are talking about the possibility of AAVE price rallying to $200.
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