Will AAVE Surge to above the $200 level After the v3.2 Upgrade?

• AAVE, one of the leading decentralized finance (DeFi) protocols recently launched the highly anticipated v3.2 upgrade.
• AVE’s v3.2 upgrade introduces key features like Liquid eMode and improved capital efficiency, positioning the protocol for potential growth.

Aave, one of the leading DeFi protocols started the year on a rather slow note, but with recent developments, there’s reason to believe something positive will happen. Aave’s price has been sluggish since last week with the digital asset plummeting 1.91% and 3.56% in the past 24 hours and past month respectively. 

But hey, Aave’s price has looked good over the past month and year. Notably, with a current price of $141.89, AAVE has risen 3.66% and 118% in the past month and year respectively. 

Taking the plunge into development, the Aave team revealed the highly anticipated  v3.2 upgrade. This development has sparked interest among investors and analysts, leading them to forecast further growth, subsequently raising questions about whether it will surge to a new all-time high or possibly above the $200 level.

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

The v3.2 upgrade introduces several key features designed to improve user experience and capital efficiency. Among these is the introduction of Liquid eMode, which provides users with more granular control over borrowings and collateral management. This feature allows for better risk management strategies, offering different eModes for various assets, which could attract more users to the platform.

Additionally, the removal of deprecated stable rate logic streamlines operations and enhances capital efficiency, making the protocol more attractive to users seeking to optimize their assets.

AVE’s price has exhibited a consistent upward trajectory, supported by a rising trendline since October 2023, indicating strong resilience and positive momentum. Worth mentioning, AAVE reached a yearly high of $177.21 on November 23, marking its highest weekly close since 2022. This upward movement comes amid the release of the v3.2 upgrade, which promises to enhance the protocol’s functionality and efficiency.

The v3.2 upgrade comes at a time of high market volatility but positions AAVE ready to give a good fight in the defi sector. Additionally, The DeFi protocol recently gained a boost in institutional backing. As we earlier reported , Grayscale, the world’s largest crypto asset manager recently announced the launch of a new investment fund to Aave. This new development will expose institutional investors to one of the leading DeFi platforms.

AVE’s dominance in the lending and borrowing market is notable, with the protocol commanding a 64% share and boasting 4.6 times more active loans than its closest competitor, Spark Protocol. This market dominance, combined with the new upgrade, could give AAVE the boost it needs to attract more users and increase its total value locked.

Although AAVE’s current TVL and active loans remain around 60% below their all-time highs, the improvements brought by the v3.2 upgrade could reverse this trend. Enhancements like lower transaction costs, improved gas efficiency, and customizable risk management options make the protocol more competitive and user-friendly, potentially driving demand for AAVE tokens.