Aave (AAVE) Price Prediction 2024: Can AAVE Hit $200 This Year?

AAVE began the year 2024 on a slow note but the overall look at the AAVE price shows it is gaining significant momentum.

Aave (AAVE) price has shown positive signs on the weekly chart, with the recent unveiling of the v3.2 upgrade, which could boost the AAVE price rally.

AAVE price dips, but v3.2 upgrade signals strength

Analyzing recent AAVE price action reveals that the price has indeed been positive since October 2023, as it followed an ascending support trend line. In fact, it made multiple attempts to break above the resistance level of $150.

While recent attention has shifted to the breakout from this key level, a closer inspection of the weekly chart shows that the DeFi token price managed to close above this pivotal resistance in August 2024, marking a breakout. After that, it reached the highest weekly close since 2022, including a new yearly high of $177.21 on November 23.

According to Michael Nadeau, founder of the DeFi report, this protocol is way ahead of its closest rivals, commanding an astonishing 64% share of the lending and borrowing market. At the same time, it has 4.6 times more active loans compared to its closest competitor, Spark Protocol.

In fact, this protocol has, together with MANA and GRT, recently emerged as three altcoins that could enjoy a price surge as the crypto market rebounds.

While AAVE is indeed one of the top DeFi protocols, it should be duly noted that its active loans and TVL are around 60% lower than their all-time highs, with 84% of its loans currently deployed on the Ethereum network.

The DAO is making an upgrade to v3.2-an upgrade that sets ground for a number of key improvements to the user experience and efficiency of the protocol.

Aave DAO launches the v3.2 upgrade, developed by @bgdlabs.

Introducing Liquid eMode for greater control and flexibility over borrowing and collateral, users benefit from improved gas efficiency and customizable risk management. pic.twitter.com/NKf298JNEQ

— Aave Labs (@aave) October 8, 2024

Among these is Liquid eMode, which introduces more granular control for users over borrowings and collateral management through the ability to choose different eModes for listed assets. This new upgrade improves gas efficiency and could lower transaction costs for users, while offering extensive risk management options for one’s financial strategies.

Also, the removal of deprecated stable rate logic cleans up the operations and improves capital efficiency, which makes the protocol more attractive for those users that want to optimize their assets. This change had been discussed in the community and through governance proposals, reflecting active community involvement with the development of AAVE.

The v3.2 upgrade could positively influence AAVE price by enhancing the protocol’s efficiency and user experience, which may attract more users and increase total value locked (TVL). Additionally, improvements such as Liquid eMode and customizable risk management options could make the protocol more competitive in the DeFi lending market, potentially driving demand for AAVE tokens as users engage more actively with the platform.

The above is the detailed content of Aave (AAVE) Price Prediction 2024: Can AAVE Hit $200 This Year?. For more information, please follow other related articles on the PHP Chinese website!