The lending platform AAVE has been enjoying positive news lately. According to reports, AAVE has passed a governance proposal that would eradicate all bad debt it accumulated when Avraham Eisenberg, orchestrator of the <\/span>Mango Markets exploit<\/span><\/a>, targeted the platform\u2019s Ethereum V2 liquidity pool back in <\/span>November 2022<\/span>.\u00a0<\/span><\/p>\n However, the governance token of the platform, AAVE, has not responded either positively or negatively. According to data from <\/span>CoinGecko<\/span><\/a>, the token registered losses in the daily and weekly time frames. But these losses are too miniscule to revert the token\u2019s gains from the start of the year.\u00a0<\/span><\/p>\n \u00a0<\/span>With the launch of AAVE\u2019s V3 on its mainnet, the crypto might be in a position to tally new highs if the situation permits it.\u00a0<\/span><\/p>\n Based on the <\/span>proposal<\/span><\/a>, the token has over 2,677,749 units of CRV in debt on its Ethereum V2 CRV reserve. This is worth, at the date of the proposal, over $2.5 million. The proposal would use V2\u2019s stablecoin reserve to buy the necessary number of units of CRV to pay the debt.<\/span><\/p>\n This obviously was accepted by the community positively, being implemented immediately by January 25th. This would reverse the damage of the exploit attempt, proving the liquidity of the protocol.\u00a0<\/span><\/p>\n The deployment of AAVE\u2019s V3 on Ethereum was also implemented. According to <\/span>DefiLlama<\/span><\/a>, the crypto is in the top 4 among all platforms. AAVE V3, the Ethereum pool deployment, has over $526.52 million total value locked.\u00a0<\/span><\/p>\n The token is currently consolidating around the $85.8 support range. This could be a sign that the token still has room to regain lost ground from 2022\u2019s bear market. However, this can only be achieved if the token closes with a green candle to continue AAVE\u2019s rally when the year started.\u00a0<\/span><\/p>\n Investors and traders should target the token\u2019s current resistance at $90.15. If the bulls can consolidate at the token\u2019s present support, we can see an upward push towards $94.70.\u00a0<\/span><\/p>\n Investors should also monitor the token\u2019s correlation with Bitcoin and Ethereum as these would have a big influence on its price movement in the short to medium term. <\/span><\/p>\n As these major cryptocurrencies retest their crucial resistances, a breakthrough by either one or both of these coins would boost AAVE\u2019s momentum to regain lost ground.\u00a0<\/span><\/p>\n With this in mind, investors and traders should exercise caution in the short to medium term as the token can still be clawed by the bears to revert back to $78.65.<\/span><\/p>\n![\"AAVE\"](\"https:\/\/newsbtc.com\/wp-content\/uploads\/2023\/01\/AAVE.png\")
Image: Coinpedia<\/pre>\nThe Gist Of The Proposal & On-Chain Developments<\/strong><\/h2>\n
![\"\"](\"https:\/\/newsbtc.com\/wp-content\/uploads\/2023\/01\/a-89-860x361.png\")
Image: DefiLlama<\/span><\/a><\/pre>\nAt $86.02, What\u2019s In Store For AAVE?\u00a0<\/strong><\/h2>\n
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AAVE total market cap at $1.2 billion on the daily chart | Chart: TradingView.com<\/a><\/pre>\n