Aave

Ethereum

2024

Foundation

Coin

AAVE, the native cryptocurrency of the Ethereum-based decentralized custodial platform Aave, has staged a strong recovery surging past $100 today. As of press time, the AAVE coin price is trading 12% up at $100.27 with a market cap of $1.49 billion.
<h2 id="why-is-the-aave-coin-price-soaring">Why Is the Aave Coin Price Soaring?</h2>
As per the latest report, the governance proposal has been the major reason behind the <a href="https://coingape.com/markets/aave-price-breaks-100-market-activity-soars-after-fee-switch-proposal/" target="_blank" rel="noopener noreferrer nofollow">AAVE surge</a>. This governance proposal plans to bring a fee switch along with a token buy-back program.
Mark Zeller, the founder of the Aave-Chan Initiative, explained that the AAVE fee switch proposal plans to bring a major change to the <a href="https://coingape.com/education/what-is-aave/" target="_blank" rel="noopener noreferrer nofollow">Aave protocol</a>‘s revenue model. This will introduce a mechanism in order to collect transaction fees by using the funds to buy back the AAVE tokens from the open market.
<blockquote class="twitter-tweet">
 Leveraging the introduction of Umbrella,
 It’s time to upgrade the <a rel="noopener noreferrer nofollow" href="https://twitter.com/search?q=%24AAVE&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$AAVE</a> role in our ecosystem.
 Let’s explore this together:<a rel="noopener noreferrer nofollow" href="https://t.co/70z1jD2pjf">https://t.co/70z1jD2pjf</a> <a rel="noopener noreferrer nofollow" href="https://t.co/He7XPyzkT0">pic.twitter.com/He7XPyzkT0</a>
 — Marc “Billy” Zeller <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f47b.png" alt="👻" class="wp-smiley" style="height: 1em; max-height: 1em;"> <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f987.png" alt="🦇" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f50a.png" alt="🔊" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@lemiscate) <a rel="noopener noreferrer nofollow" href="https://twitter.com/lemiscate/status/1816469283624337413?ref_src=twsrc%5Etfw">July 25, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
If Aave implements this governance proposal, it could generate more than $60 million in annual revenue for AAVE holders. As per the data from <a rel="noopener noreferrer nofollow" href="https://defillama.com/protocol/aave#information" target="_blank">DeFiLlama</a>, the Aave protocol has currently more than $12.869 billion in total value locked.
Along with the surge in the <a href="https://coingape.com/price/aave/" target="_blank" rel="noopener noreferrer nofollow">Aave price</a>, the network activity on the Aave Protocol has also increased considerably.
Also Read: <a href="https://coingape.com/ethereum-foundation-moves-92500-eth-ether-etf-outflows-surge/" target="_blank" rel="noopener noreferrer nofollow">Ethereum Foundation Moves 92,500 ETH, Ether ETF Outflows Surge</a>
<h2 id="aave-price-surge-to-continue">AAVE Price Surge to Continue?</h2>
If the bulls manage to sustain the Aave Coin Price above $100, there’s a high chance of a price rally to continue to $110 and further to $130 in the medium term. Amid the current surge, AAVE has recouped the losses over the past week and is up by 10.51% over the past month.
The good thing is that the Aave Coin price is trading above the 200-day moving average which indicates a favorable growth potential. Additionally, the AAVE altcoin has strong support from the crypto exchange <a href="https://coingape.com/coinbase-exchange-adds-support-for-these-3-major-cryptos-prices-to-rally/" target="_blank" rel="noopener noreferrer nofollow">Coinbase</a> which added Aave perpetual futures providing a strong liquidity thrust to the cryptocurrency.
In the past 24 hours, the AAVE trading volume has surged by 65% and is currently around $216 million. Furthermore, Aave’s yearly inflation rate has reached a low of 2.29% which could result in less circulating market supply. As a result, market analysts are hinting at the possibility of AAVE price rallying to $200.
Also Read: <a href="https://coingape.com/ethereum-options-expiry-500k-contracts-set-to-expire-today-whats-ahead/" target="_blank" rel="noopener noreferrer nofollow">Ethereum Options Expiry: 500K Contracts Set to Expire Today</a>
The post <a href="https://coingape.com/why-is-aave-coin-price-soaring-today/" rel="noopener noreferrer nofollow">Why Is Aave Coin Price Soaring Today?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Why Is Aave Coin Price Soaring Today?

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