Aave, a leader in decentralized finance, has seen its AAVE tokens surge over 21% this week, outperforming the broader crypto market. This is due to a significant governance proposal from Aave DAO that aims to enhance the token's value accrual mechanisms. The proposal includes changes that incentivize AAVE holders and strengthen the protocol's financial resilience. Despite being widely distributed, the AAVE token has relatively low daily active addresses, suggesting users are holding in anticipation of further price appreciation. On-chain metrics for AAVE are promising, with increased activity since the end of 2024. Aave's main hub remains Ethereum, where it commands a significant portion of the total supplied and borrowed assets. The project has plans to expand to other blockchains in the future, and its growth in user base, multi-chain deployments, and active governance show no signs of slowing down.



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