- Aave’s core protocol measures, including its outstanding loans or Total Value Locked (TVL), remained relatively unaffected by this bullish price performance.
The founder of one of the leading independent companies offering Aave services (AAVE +2.76% DAO), Marc Zeller, released a temperature check on Thursday, July 25, regarding a new Aave governance proposal that could result in a fee transfer.
The proposal’s buy & distribute scheme, which would purchase or repurchase AAVE on the secondary market using the protocol’s fee income, attracted the most attention of all its components. AAVE’s market capitalization soared by 10% in two hours after this “temp check” was released, and it has subsequently grown by a further 5%, bringing its market cap to $188 million.
It’s important to note that during this period, the market as a whole and the price of bitcoin both experienced significant increases in tandem with AAVE’s market cap, with BTC climbing by almost 2% in the two hours after the release of the Aave temp check.
Even so, AAVE has outperformed the overall market, suggesting that the temporary check was a significant factor in AAVE’s recent two-day surge to the top of the market.
Aave’s core protocol measures, including its outstanding loans or Total Value Locked (TVL), remained relatively unaffected by this bullish price performance. For instance, Aave’s TVL was $13.02 billion at the time of the release of the “temp check,” and over the next two days, there was only a very slight sub-1% movement to $12.91 billion.
Since a temperature check for a governance proposal has no effect on the protocol’s underlying mechanisms, this lack of influence on the metrics is expected. Rather, the market’s excitement and confidence regarding the proposal’s possible execution are better reflected in the lively price movements of the AAVE token.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
