AAVE Coin Spikes Following the Successful Launch of Aave DAO’s v3.2 Upgrade

Key Takeaways:

• AAVE Coin rose over 7% following the v3.2 upgrade launch by Aave DAO.
• The upgrade introduces “Liquid eModes” and phases out stable borrowing.
• It also enhances capital efficiency on the Aave Protocol, appealing to asset management optimization.

Aave (AAVE), the governance token of the Aave decentralized money market protocol, rose over 7% just hours after the Aave DAO launched the v3.2 upgrade.

This upgrade was created by Bored Ghosts developing (bgdlabs), which proposed the idea for voting on the Aave decentralized governance platform on October 3, 2024, initiated polling on October 4, and ultimately implemented it on October 8 after receiving sufficient supportive votes.

The proposal aims to enhance all active Aave instances from version 3 to 3.2, introduce “Liquid eModes,” and completely phase out stable borrowing.

What The V3.2 Upgrade Means for Aave Protocol

For beginners, Aave is an open-source, decentralized protocol offering non-custodial liquidity markets. It enables users to generate interest by providing and borrowing assets at variable interest rates.

The protocol users can act as suppliers who add liquidity or as borrowers who take loans, allowing instant crypto lending and borrowing without intermediaries.

Related: Where To Stake AAVE

However, the platform has advanced its decentralized offerings with the release of its version 3.2 upgrade. As stated by the AAVE DAO team, this upgrade brings vital improvements to the Aave protocol, concentrating on enhancing user experience and efficiency.

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

A major feature of the Aave v3.2 upgrade is the introduction of Liquid eMode, which offers users more control and flexibility over their borrowing and collateral management. This capability permits assets available on Aave to qualify for various eModes, allowing users to select their desired eMode.

Furthermore, the upgrade seeks to tackle one of the major pain points for decentralized finance users: high gas fees. The V 3.2 upgrade improves gas efficiency, thereby lowering users' transaction expenses.

Finally, this innovative update includes a “Customizable Risk Management” feature, which allows users to take advantage of tailored risk management options for more personalized financial strategies.

The Aave 3.2 version offers various advantages to the Aave decentralized protocol, as it introduces several enhancements that could make the platform more outstanding.

For example, the upgrade focuses on enhancing capital efficiency, rendering the protocol more appealing to users looking to optimize their asset management approaches.

AAVE Coin Price Performance

This groundbreaking development may have played a crucial role in the recent surge in the price of AAVE Coin over the last few hours.

AAVE is now priced at $152.58, having experienced a 7.16% increase, and its market cap has exceeded $2.279 billion. It has also seen a 77.23% rise in trading volume over the past 24 hours, totaling $155.35 million.

Related: This Is What Decentralized Finance Is & How It’s Changing Traditional Finance

The price charts indicate bullish patterns, hinting at a possible rise to approaching its all-time high of over $666 in 2025. Expert forecasts for Aave in the rest of 2024 suggest a price range between $150.23 and $172.98, with an average of around 161.28.

Moreover, bullish trends on both the weekly and 3-day charts imply potential upward movement, possibly reaching a peak of 245 before encountering significant resistance.