AAVE price jumps 20% after new Tokenomics announcement, will it last?

Jakarta, Pintu News – The cryptocurrency market has recently been surprised by the rise in the price of the Aave token (AAVE) which reached 20% in the last 24 hours. This rise came after the Aave Chan Initiative (ACI) announced a new proposal for the restructuring of the Aave tokenomics. This proposal is expected to bring significant changes to revenue distribution and incentives for token holders.

Aavenomics Proposal as a Trigger for Price Hikes

On March 4, Marc Zeller, founder of the Aave Chan Initiative (ACI), introduced a proposal detailing the first phase of the Aavenomics update. The proposal aims to revise AAVE tokenomics, redistribute excess protocol revenue, remove the old LEND token, and launch Anti-GHO.

The initiative is expected to increase incentives for GHO stablecoin holders, which in turn could strengthen AAVE’s position in the market. This proposal has been enthusiastically received by the community, which is reflected in the spike in AAVE’s price. However, the question that arises is whether this rise will be sustainable or just a momentary reaction from the market. Further analysis is required to predict the future price trend of AAVE.

Also Read: Arbitrum (ARB) Surges After Robinhood Entry: What Will Happen Next?

AAVE Technical Analysis: Keeping the Momentum

Currently, AAVE is trading at $211.45, which is slightly above the $199.80 support level. If the selling pressure continues, it is likely that this support level will be difficult to maintain. If this level is successfully broken, the price of AAVE could drop all the way down to $145.42, the lowest level last reached in November 2024.

It is important for investors to monitor this support level as it can be an important indicator of market strength. If AAVE manages to keep the price above this level, there is potential for it to go back up. However, if not, there could be further downside to watch out for.

Long-term Potential of Aavenomics

The Aavenomics update focuses not only on improving short-term incentives but also on the long-term sustainability of the protocol. With more effective revenue redistribution and the removal of the obsolete LEND token, AAVE seeks to be more attractive to investors and users. This could be a key factor in determining whether AAVE will continue to grow or experience a decline.

In addition, the launch of Anti-GHO as part of this proposal demonstrates AAVE’s commitment to continuous innovation. This could be an important factor influencing the market’s perception of AAVE’s long-term value. Investors and analysts should pay close attention to how the community and market respond to the implementation of these new features.

Conclusion: AAVE Outlook Post Aavenomics Proposal

With all the changes proposed in the Aavenomics proposal, AAVE shows potential for steady and sustainable growth. While there are risks associated with any major change in the cryptocurrency ecosystem, the steps taken by AAVE seem to point in a positive direction. Investors and users should remain vigilant and monitor further developments to make informed investment decisions.

Also Read: Binance Attracts Investors After Bybit Hack, Funds Flow Increases Sharply!

That’s the latest information about crypto news today. Get more information about crypto academy from beginner to expert level only at Pintu Academy and enrich your knowledge about the world of crypto and blockchain.

Follow us on Google News to get the latest information about crypto and blockchain technology. Enjoy an easy and secure crypto trading experience by downloading Pintu Crypto via Google Play Store or App Store now.

Experience web trading with advanced trading tools such as pro charting, various order types, and portfolio tracker only at Pintu Pro. Click Register Pintu if you don’t have an account or click Login Pintu if you are already registered.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. Aave Tokenomics Proposal Sparks Price Surge. Accessed on March 6, 2025
• Featured Image: Beamstart