In this article, we discuss the latest relevant news about the Aave project, a decentralized lending crypto protocol with 37 billion in TVL.
Among the hottest topics we find the introduction of a new tariff change policy and the presentation of a particularly risky governance proposal.
Finally, let’s take a look at the chart structure of the AAVE token and see what the possible price scenarios are for 2025.
All details below.
Aave founder considers “fee change” to improve the management of his cryptocurrencies
A few days ago, Stani Kulechov, founder of the well-known Aave crypto project, expressed his intention to activate a “rate change” initiative for the protocol. We are talking about a Mechanism that aims to improve the efficiency of the platform’s income by investing part of the fees collected.
Generally, these proposals end up rewarding the holders of the platform’s native token, in this case AAVE, given the way in which capital is distributed.
Is My dear that, if the fee change is truly integrated, part of the proceeds will be offered as a “dividend” to crypto holders/participants or used for buybacks in the market.
Aave Protocol Is in a Strong Financial Positionand you can afford to allocate a portion of the new income to more aggressive investment strategies.
Its treasury holds nearly $100 million in non-native assets, including stablecoins, Ethereum, and other cryptocurrencies.
Taking into account also the AAVE cryptography itself, The treasure far exceeds 328 million dollarsas reported by TokenLogic.
Regarding the proposal to change the rates, Marc Zeller, founder of Aave Chan, who was one of the first contributors to the plan, intervened.
The expert highlighted how Aave’s net income significantly exceeds operating expenses, making the measure not only feasible but also speculatively strategic.
These are his words in a mail in X
“When the protocol treasury is presented in this way and the net income of the DAO is more than double the Opex (incentives included), the change of fees is not a hypothesis; “It’s a when.”
Composition of the Aave Treasury. Fountain: TokenLogic
The new governance proposal to unite USDe and USDT prices
Another very important situation for Aave refers to the new governance proposal presented by Chaos Labs and LlamaRisk on January 3rd.
The two Aave DAO members have suggested align the price of USDe (Ethena protocol stablecoin) with that of USDT in their own prices.
This means that the responsible oracle, Chainlink, should encode the price of USDe as if it were the Tether stablecoin, limiting the risks of market fluctuations.
In fact, we recall that the first coin has direct exposure to derivatives and digital assets such as Ethereum and Bitcoin, while it is not backed by fiat reserves.
In this case, the risk of takeoff is much higher compared to currencies like USDT or USDC, which have collateral that can cover deposits 100%.
The objective of the proposal is precisely to ensure that users do not suffer possible temporary withdrawals from the USDewith price stability.
In this way, those who use the cryptographic protocol reduce the risk of being liquidated in the event of high volatility.
The proposal says the following:
“By linking the value of USDe directly to USDt, we align the sUSDe oracle with USDe prices, ensuring seamless integration and avoiding disruptions caused by temporary price fluctuations in USDe.”
In any case, the Aave community does not seem to have taken the news well, offering a very negative comments to the governance proposal.
As written on the DAO forum, many users have complained about the risks associated with this initiative, which seems high caliber for Aave.
In essence, Ethena refers to the underlying risk factors of USDe, which do not appear to have been taken into account by Chaos Labs and LlamaRisk.
One user in particular, Hazbobo, said that encoding USDe with USDT It seems a bit risky since the former is not even considered a stablecoin.
Furthermore, the proposal does not evaluate the best-case scenario or the worst-case scenario, making the entire debate reasonably unreliable.
AAVE Cryptocurrency Price Analysis: Where Are We Headed?
The Aave cryptocurrency is coming from a super positive phase, with a performance of 78% in the month of December that has made it one of the most attractive DeFi coins of the moment.
The lending protocol token seems to have taken off immediately after the US presidential election, even reaching the $390 level.
From here, the bulls had to face downside pressure from the bears, which pushed AAVE below $300 amid the chart pullback.
Now the number 31 cryptocurrency on the market is priced at $337, waiting to discover what the direction will be in the first quarter of the year.
As an indication, the probabilities favor an appreciation of AAVE, which should continue its bullish run towards new highs.
Quotes are still far from the daily EMA50 and market volumes are still quite high, which demonstrates buyer activity.
Furthermore, the new fee change policy, if implemented, will give more value to the AAVE cryptocurrency, its use cases and/or remove supply from the market.
We expect AAVE to break the $400 resistance in the coming weeks, pointing to new price horizons.
To the delight of the shorts, we point out that there could also be possible bearish scenarios for the price of the coin.
In fact, we notice a large bearish divergence in the RSI between the values of December 13 and today: while the index indicates a decline, prices have moved sideways.
To add then how, in the event that even Bitcoin and Ethereum recorded declines, AAVE would also be involved, ruining the bull’s plans.
In the hypothesis of a price contraction, we can expect AAVE below the 50-period moving average, between $280 and $240.
