SEC Ends Aave Investigation, Founder Unveils Long-Term Growth Plan

SEC Closes Investigation Into Aave

  • The SEC concluded a nearly four-year investigation into the DeFi protocol Aave without enforcement action.
  • Aave was informed on August 15 that no legal action would be recommended.
  • The investigation started under a stricter regulatory environment for digital assets.
  • Aave maintained regular communication with regulators, eliminating legal uncertainties.

Aave’s Long-Term Roadmap

  • Aave plans to expand through three main initiatives: Aave V4, Horizon, and the Aave App.
  • Aave V4 involves a complete redesign to unify liquidity across networks.
  • Horizon focuses on regulated lending, launched earlier this year.
  • The Aave App aims to simplify DeFi access for everyday users.
  • The platform has processed over $3.33 trillion in deposits and issued close to $1 trillion in loans.
  • This year, Aave generated around $885 million in fees and holds about 59% of the DeFi lending market.

AAVE Price Analysis

  • AAVE's price declined by approximately 2%, with trading volume dropping by 28%.
  • The token is below a resistance zone near the upper Bollinger Band at $360.
  • Key support is noted between $135 and $150, crucial for stabilizing prices.
  • To signal recovery, AAVE needs to surpass the $250-$280 range and move above $360.

AAVE price analysis on weekly chart. | Source: TradingView