Why Is Aave Coin Price Soaring Today?

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As a seasoned researcher with years of experience in the crypto space, I’ve witnessed my fair share of market fluctuations and price surges. The recent development with AAVE, the native cryptocurrency of the Ethereum-based decentralized platform Aave, has caught my attention due to its impressive recovery and significant price surge above $100.

The Ethereum-based decentralized custodial platform Aave’s native cryptocurrency, AAVE, has experienced a robust rebound, surpassing the $100 mark today. At present, the coin’s price is up by 12%, trading at $100.27. Its market capitalization currently stands at $1.49 billion.

Why Is the Aave Coin Price Soaring?

According to recent findings, the governance proposal has been the primary driver of the recent increase in Aave’s value. This proposition includes implementing a fee shift and initiating a token repurchase program.

Mark Zeller, founder of the Aave-Chan Initiative, revealed that the AAVE fee switch proposal aims to significantly alter Aave protocol’s revenue system. This modification will introduce a mechanism enabling the platform to collect transaction fees by purchasing AAVE tokens back from the market using the accrued funds.

Leveraging the introduction of Umbrella,
It’s time to upgrade the $AAVE role in our ecosystem.
Let’s explore this together:
— Marc “Billy” Zeller (@lemiscate) July 25, 2024

Should Aave carry out the proposed governance update, it’s estimated that AAVE token holders could potentially earn over $60 million in annual income based on current figures. According to DeFiLlama’s data, the Aave protocol at present holds a total value of approximately $12.869 billion locked in it.

The price of Aave has significantly risen, accompanied by a notable uptick in network activity on the Aave Protocol.

AAVE Price Surge to Continue?

If the price of Aave Coin stays above $100, it’s likely that the rally will persist, potentially reaching $110 and even $130 in the coming months. After a recent surge, AAVE has regained its losses from the previous week and has risen by 10.51% over the past month.

It’s advantageous that the price of Aave Coin is currently above its 200-day moving average, suggesting promising growth prospects. Moreover, the AAVE altcoin benefits from robust backing by crypto exchange Coinbase. This support is evident through Coinbase’s introduction of Aave perpetual futures, significantly enhancing the digital currency’s liquidity.

Over the past day, the trading volume for AAVE has significantly increased by 65%, amounting to approximately $216 million. Notably, Aave’s annual inflation rate has dipped down to a minimum of 2.29%. This decrease might lead to reduced market supply due to less new coins being generated. Consequently, some market experts are predicting that AAVE could potentially experience a price surge towards $200.

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2024-07-26 17:24