The AAVE cryptocurrency is up over 7% on Tuesday, after the Aave Chan Initiative proposed a new buyback program in a new phase of “Aavenomics.” Aave Chan Initiative founder Marc Zeller posted an Aave Request for Comment (ARFC) proposal on Tuesday. The founder is seeking approval on the first phase of the “Aavenomics” update. The update would focus on AAVE tokenomics improvements, protocol excess revenue redistribution, secondary liquidity protocol management, and the deprecation of LEND.
“After half a decade of hard work, with the ACI, we’re proud to present the updated Aavenomics proposal to the Aave DAO,” Zeller said on X. “We consider it the most important proposal in our history, feel free to have a read and provide feedback.” According to the new proposal, AAVE DAO plans to buy back $1 million AAVE weekly by introducing a buyback and distributing excess revenue. This is expected to enhance the protocol’s financial performance and overall liquidity. Additionally, the proposal includes the termination of the LEND token migration, ensuring a strong financial structure with sustained growth.
AAVE Price, TV Moves Up
The trading volume over the AAVE platform surged notably by over 84% Tuesday, reaching close to $620 million. While the cryptocurrency has been down nearly 21% in the past month, it is regaining some steam because of the new Aavenomics proposal.
According to the above date from TradingView, AAVE is trading within an expanding channel, holding the ascending trend line as a strong support. However, the cryptocurrency has yet to rise above the broken support, while the MACD & CMF continue to remain questionable. The MACD is about to undergo a bullish crossover, but the levels remain within the negative range. In addition, the CMF has rebounded and risen above 0 but has not yet surged above 0.14 since the start of the year.
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Therefore, the AAVE price must surge and achieve a resistance at $227 initially and later at $280, which could fade the bearish sentiment around the token. With this, the price could reclaim $300 and head towards a new high.
