Will Aave’s Long-Term Growth Plans Dampen Short-Term Investor Expectations?

  • Aave reveals how past grants have contributed to the network
  • Why focusing on development is the right way to go for AAVE

Aave has announced that a snap vote on a recent proposal aimed at renewing Aave Grant’s DAO has begun. If approved, the decentralized network could begin to spur further development in pursuit of long-term growth.

Read the AAVE 2023-2024 price forecast

The official announcement revealed that the motion voted on was on the fourthy Proposals of its kind aimed at stimulating development. The move came at a time when the market is experiencing a downturn in the cryptocurrency market.

The crypto winter has greatly eroded trust and interest in the sector, so a quick vote is of great importance to AAVE.

If the proposal is implemented, it would allow Aave to focus more on the network’s long-term future. Since this is a vote for grant renewal, it might be a good idea to review how previous grants have been handled and whether they have benefited from the network.

Aave Grants revealed that more than 122 grants have been awarded since the last offer. Recipients of these grants have focused on application development and integration, as well as education and marketing to the community. Some of these contributions went to hackathon prizes, so you could say they benefited the network.

Will Aave Grant’s DAO Affect Price Trends in the Short and Long Term?

It is unlikely that there will be a short-term effect on the price as there will be no direct correlation with demand. However, it can have an impact, especially since it aims so strongly at facilitating development.

Aave has managed healthy developmental activity over the past 12 months, but the same metrics have shown a significant decline over the past four weeks.

Source: feeling

A healthy development may encourage more investors to consider the state of the network. This may contribute to an increase in investor confidence, but this is only one aspect.

Investors should also consider other growth areas that can contribute to long-term growth. For example, network growth is another area that has received great success from November to today.

The growth of the AAVE Network

Source: feeling

How many AAVEs can you get for $1?

The growth of the AAVE think tank network may be due to a drop in Web3 activity thanks to the bear market. A re-growth or pivot in network activity is likely to emerge as demand for cryptocurrencies recovers.

The above observation is also supported by the fact that transaction volume and daily active addresses have also decreased in recent weeks.

AAVE's transaction volume and daily active addresses

Source: feeling

Regardless of the market’s outcome in 2023, Aave’s decision to direct grants toward network development could work in the long run in favor of investors. AAVE’s position will strengthen when the market finally recovers.

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