Bitcoin price dropped to $63,800 in the last 24 hours, losing the key $65,000 support. We explained the reason for the drop. Investors have valid reasons to panic regarding short-term performance. However, some altcoins can positively diverge during this period. One of them just did.
Why is AAVE Rising?
Marc Zeller’s newly published protocol proposal focuses on the updated “AAVEnomics.” This proposes activating the fee-switch feature by leveraging the Safety Module Umbrella update to collect AAVE tokens from the open market (token buyback).
The security update introduced to prevent the AAVE protocol from being negatively affected by bad debt includes a “buy and distribute” program. The protocol’s excess revenue will be used to buy AAVE from secondary markets. The ecosystem reserve will be expanded, and regular demand will be created on the AAVE front, ensuring security while protecting stakers.
Following the announcement, the AAVE Coin price increased by over 7%. BTC, however, was lingering at $64,200 at the time of writing.
