Price analysis and latest news of the Aave crypto project: DeFi star

In this article, we take a look at the latest news related to the Aave project, a 37 billion TVL decentralized lending crypto protocol.

Among the hottest topics are the introduction of a new fee-changing policy and the introduction of a particularly risky governance proposal.

Finally, let’s take a look at the graphical structure of the AAVE token and see what are the possible price scenarios for 2025.

All the details below.

The Aave founder considers “fee switching” to improve the management of his cryptocurrencies

A few days ago, Stani Kulichov, founder of the well-known cryptocurrency project Aave, expressed his intention to activate “Switch fees” Initiative for the Protocol We are talking about a A mechanism aimed at improving the efficiency of the platform’s revenues by investing a portion of the fees collected.

Generally, these proposals end with a reward Owners From the platform’s native token, in this case AAVE, due to the way capital is distributed.

that it estimated That if toll switching is truly integrated, it will be part of profit They will be offered as “dividends” to cryptocurrency holders/partners or will be used for market buybacks.

The Aave protocol has a strong financial positionThey can allocate a portion of the new revenues to more aggressive investments Strategies.

Its treasury contains approximately $100 million in non-domestic assets, including stablecoins, Ethereum And other cryptocurrencies.
Also considering the AAVE encryption itself, The treasury exceeds $328 millionAs reported by TokenLogic.

Regarding the fee change proposal, Mark Zeller, founder of Aave Chan, who was an early contributor to the plan, intervened.

The expert highlighted how Aave’s net revenues significantly exceed operating expenses, making the move not only possible, but also strategic in theory.

These are his words in A mail On X

“When a protocol treasury is presented in this way and a DAO’s net revenue is more than twice its operating expenses (including incentives), switching fees is not an ‘if’; it is a when.”

Aave cabinet configuration. source: TokenLogic

The administration’s new proposal to unify USDe and USDT price feeds

Another very important situation for Aave concerns the new Governance proposal Posted by Chaos Labs and LlamaRisk On January 3.

The two members of Aave have proposed DAO Aligning the price of USDe (the stablecoin of the Ethena Protocol) with the price of USDT in their price feeds.

This means that the oracle is responsible, namely Chain linkit should encrypt the price of USDe as if it were the stablecoin of pregnancyThis reduces the risk of market fluctuations.

We remember in fact that the first coin has direct exposure to derivatives and digital assets such as Ethereum and Bitcoin While it is not backed by paper reserves.

In this case, the risk of unpegging is much higher compared to coins such as USDT or USDC, which have collateral that can cover deposits by 100%.

The goal of the proposal is specifically to ensure that users do not suffer from potential temporary demonetization of the US dollarIt is characterized by price stability.

In this way, those who use the crypto protocol reduce the risk of liquidation in the event of high volatility.

Below is the text of the proposal:

“By pegging the value of USDe directly to USDt, we align the sUSDe oracles with USDt prices, ensuring seamless integration and avoiding disruptions caused by temporary price fluctuations in USDe.”

However, it seems that the Aave community did not take the news well, as A Very negative feedback On the governance proposal.

According to what was written on the DAO forum, many users complained about Risks associated with this initiative, which seems to be of gigantic magnitude for Avi.

In essence, the primary risk factors for USDe are pointed out by Ethena, which appear to have not been taken into account by Chaos Labs and LlamaRisk.

One user in particular, Hazbobo, said that USDe encryption using USDT It seems a bit risky considering that the first coin is not even considered a stablecoin.

Furthermore, the proposal does not evaluate the best-case scenario and the worst-case scenario, making the entire discussion somewhat unreliable.

AAVE Cryptocurrency Price Analysis: Where Are We Going?

The Aave cryptocurrency is coming off a very positive phase, with a 78% performance in December making it one of the most attractive coins. Decentralized finance Coins of the moment.

It looks like the Lending Protocol token has taken off right after american presidential elections, Even reaching $390.

From here the bulls had to clash with the bearish pressure of the bears, pushing AAVE below $300 in the middle of the chart bounce.

Now the No. 31 cryptocurrency has a market price of $337, waiting to discover what trend it will be in the first quarter of the year.

Significantly, the odds favor a rise in the value of AAVE, which should continue its upward march towards searching for new highs.

Quotes are still far from the 50 daily EMA and market volumes remain very high, indicating active buyers.

Furthermore, the new fee switching policy, if implemented, will give greater value to the AAVE cryptocurrency and its use cases and/or by removing supply from the market.

We expect that in the coming weeks AAVE will break the resistance level at $400, targeting new price horizons.

For the happiness of the shorts, we point out that there are also possible bearish scenarios for the currency price.

We have already observed significant bearish divergence at the level RSI Between December 13 values ​​and today’s values: While the indicator indicates a decline, prices move sideways.

Let’s add how if Bitcoin and Ethereum record withdrawals, AAVE will also participate, ruining the bull’s plans.

On the assumption of price deflation, we can expect AAVE below the 50-period moving average, between $280 and $240.