- Aave DAO has passed a proposal to purchase $2 million CRV tokens.
- The majority of AAVE investors continued to hold at a loss.
In a new proposal, the governing body of the Aave [AAVE] lending protocol has approved the acquisition of $2 million worth of Curve [CRV] tokens.
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This decision was necessary due to the protocol’s exposure to Curve’s hack. As contained in the proposal,
“The acquisition aims to support the DeFi ecosystem and position Aave DAO strategically in the Curve wars, benefiting GHO secondary liquidity.”
Day traders remain unmoved
While this was a significant development that might influence the protocol’s trajectory in the coming months, holders of its AAVE tokens appear unimpressed.
An assessment of trading activity in the past 24 hours revealed that sentiment remained negative amid declining accumulation pressure. In fact, the decline in interest in governance tokens preceded Curve’s hack.
According to data from IntoTheBlock, AAVE’s network activity has dwindled since the end of June. The count of daily active addresses trading the altcoin has since dropped by 94%. For context, as of 11 August, only 514 addresses completed AAVE transactions. On 23 June, this was 11,280 addresses.
Likewise, daily new addresses have also plummeted. With only 125 new addresses created on 11 August, new demand for AAVE has dropped by 14% during the same period.
Author: Abiodun Oladokun
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