One of the Top 100 Cryptocurrencies Stands Out: Why Is the Coin of the Month Rising?
Among the top 100 cryptocurrencies, Aave (AAVE) was the best performer this month. Why?
AAVE has gained over 45% in the last four weeks, making it the best performer among the top 100 cryptocurrencies in terms of market cap.
This strong rally is driven by a series of new proposals on the tokenomics and risk management of the Aave protocol. In particular, the proposal, dubbed “Umbrella,” has increased investor interest by offering mechanisms to alleviate selling pressure on AAVE.
AAVE’s price rally began in late July, when Marc Zeller, founder of the Aave-Chan Initiative, proposed distributing a portion of the platform’s net revenue surplus to critical players in the ecosystem and repurchasing tokens on the secondary market.
This proposal has fueled market sentiment, with speculation that it could create new incentives for AAVE stakers.
It was also proposed to replace the current “seize and sell” liquidation process with a “seize and burn” mechanism. This new system aims to eliminate the negative effects on the AAVE price during liquidation.
Web3 agency Deelabs stated that these buybacks will create permanent upward pressure on the market and eliminate the negative effects on the AAVE price during Umbrella’s credit liquidations.
AAVE has also been at the top in terms of revenue and fee earnings over the past four weeks. According to data tracked by TokenTerminal, Aave has generated over $27 million in revenue during this period.
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