Aave's founder Stani Kulechov announced a major shakeup after a deep review of the protocol's markets. The platform plans to phase out support for 50 asset reserves that have seen little user activity. This cleanup will affect multiple blockchain deployments, including Sonic, Scroll, zkSync, Metis, Soneium, and Aptos, trimming down 25 asset reserves tied to these networks.
The restructuring will impact roughly $98.1 million in assets and $15.6 million in outstanding loans. Aave is also removing expired Pendle principal token assets, aiming to replace them with updated versions featuring revised maturity dates. This move aims to streamline the protocol and improve overall efficiency.
After the announcement, AAVE’s price rebounded from a dip near $96, climbing to about $97.47. It now faces resistance around the 20-period exponential moving average at $97.63. Clearing this level could open the door to $98.50 and potentially the psychologically significant $100 mark. The token remains well-supported by its 50-, 100-, and 200-period EMAs, positioned at $96.56, $95.00, and $91.95 respectively.
Technical indicators show the Stochastic RSI climbing out of oversold territory, suggesting momentum could be shifting in favor of buyers. However, failure to break above the current resistance might see AAVE pull back toward $96.50 or even $95.00.
Market watchers will be watching the token closely as it navigates these technical levels while the protocol undergoes its significant restructuring.
This content is for informational purposes and does not constitute financial advice.
