AAVE Seeks Proposal To Clear Itself Of Bad Debt – Can It Overcome These Obstacles?
29 Januar 2023 - 11:33AM
NEWSBTC
The lending platform AAVE has been enjoying positive news lately.
According to reports, AAVE has passed a governance proposal that
would eradicate all bad debt it accumulated when Avraham Eisenberg,
orchestrator of the Mango Markets exploit, targeted the platform’s
Ethereum V2 liquidity pool back in November 2022. However,
the governance token of the platform, AAVE, has not responded
either positively or negatively. According to data from CoinGecko,
the token registered losses in the daily and weekly time frames.
But these losses are too miniscule to revert the token’s gains from
the start of the year. With the launch of AAVE’s V3 on
its mainnet, the crypto might be in a position to tally new highs
if the situation permits it. Image: Coinpedia The Gist Of The
Proposal & On-Chain Developments Based on the proposal, the
token has over 2,677,749 units of CRV in debt on its Ethereum V2
CRV reserve. This is worth, at the date of the proposal, over $2.5
million. The proposal would use V2’s stablecoin reserve to buy the
necessary number of units of CRV to pay the debt. This obviously
was accepted by the community positively, being implemented
immediately by January 25th. This would reverse the damage of the
exploit attempt, proving the liquidity of the protocol. The
deployment of AAVE’s V3 on Ethereum was also implemented. According
to DefiLlama, the crypto is in the top 4 among all platforms. AAVE
V3, the Ethereum pool deployment, has over $526.52 million total
value locked. Image: DefiLlama At $86.02, What’s In Store For
AAVE? The token is currently consolidating around the $85.8
support range. This could be a sign that the token still has room
to regain lost ground from 2022’s bear market. However, this can
only be achieved if the token closes with a green candle to
continue AAVE’s rally when the year started. Investors and
traders should target the token’s current resistance at $90.15. If
the bulls can consolidate at the token’s present support, we can
see an upward push towards $94.70. Related Reading: Dogecoin
Ascent Slows, But Why Are Analysts Still Bullish About The
Memecoin? AAVE total market cap at $1.2 billion on the daily chart
| Chart: TradingView.com Related Reading: What Is Threshold (T) And
Why Is This Lesser-Known Coin Swelling By 146%? Investors should
also monitor the token’s correlation with Bitcoin and Ethereum as
these would have a big influence on its price movement in the short
to medium term. As these major cryptocurrencies retest their
crucial resistances, a breakthrough by either one or both of these
coins would boost AAVE’s momentum to regain lost ground. With
this in mind, investors and traders should exercise caution in the
short to medium term as the token can still be clawed by the bears
to revert back to $78.65. Featured image by Kanalcoin.com
Ethereum (COIN:ETHUSD)
Historical Stock Chart
Von Nov 2023 bis Dez 2023
Ethereum (COIN:ETHUSD)
Historical Stock Chart
Von Dez 2022 bis Dez 2023