Aave Price Soars 11% Amid Fee Switch and Token Buyback Proposals

26 lip 2024

Aave Price Soars 11% Amid Fee Switch and Token Buyback Proposals
Aave Price surged nearly 11% intraday following the governance proposal and potential fee switch.
The on-chain metrics 24-H active addresses as well as 7-day active addresses have surged to monthly highs.

Aave price soared nearly 11% in intraday and was exchanging hands close to $101 at the time of writing. The recent surge in the altcoin seemed to be linked with a new governance proposal that could initialize a fee switch and a token buyback program.

Furthermore, the recovery in the broader market due to the Bitcoin 2024 conference also helped AAVE to some extent leading to a double digit rise in Intraday. As per the analysts, following the proposals, the market activity as well as user engagement has also noted a significant surge.

Let's analyze the possible AAVE price trajectory taking into account all the recent announcements and users activity.
New Tokenomic Proposal Sparks An Optimism In AAVE
The recent surge in Aave price can be largely attributed to the buzz surrounding the AAVE fee switch proposal. This proposal will enable the protocol to collect fees on transactions and use them for the buyback of AAVE tokens.

x.com/lemiscate/status/1816469283624337413

Furthermore, Mark Zeller who is the founder of the Aave-Chan Initiative, illustrated that this proposal could significantly change how the Aave protocol earns revenue. The plan includes introducing a mechanism to collect transaction fees and use those funds to repurchase AAVE tokens from the open market.

Hence if the proposal is approved, it could add nearly $60 million in annual revenue for AAVE holders. Aave, a leading DeFi lending platform, currently has over $12 billion in total value locked (TVL).
User Engagement On The Rise
Moreover, following the proposals, the analysts observed a notable change in an important on-chain metrics, Active addresses. The active addresses reveal the unique number of users participating in a transaction within the given timeframe.

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It highlights the user engagement in the crypto. As per the data obtained from an on-chain analytics website app.santiment.net, a sharp growth was observed in the 24 hour as well as 7 day active addresses. The rise in the number of active addresses corresponds to an increased user engagement and heightened demand.
How High Can Aave Reach Next Month?
Aave price gained traction after retracting a trendline resistance and has jumped higher. The altcoin outperformed the Bitcoin, Ethereum and Solana following a similar pattern. The recent breakout marks an end to a correction phase which AAVE was facing since mid March.



Earlier, AAVE price suffered a strong rejection in March 2024 and slumped nearly 40% towards the $80 level. The price suffered multiple rejections near an upper trend line resistance and dropped.

However, the recent breakout has pulled the crypto out of a correction phase to add on some gains. On the higher side, the most recent supply lies close to $110 which once surpassed may pave the way for a 30% rise towards the $130 level.

The technical indicators are leaving a positive note on a combined analysis. the price hovers above all the key exponential moving averages suggesting a positive trend prevailing. Also, the RSI (Relative strength index), as well as 14 day SMA line have surpassed the mean line indicating a bullish continuation.