AAVE Price Outlook: V4 Launch and Potential Token Burns

AAVE’s Q3 Rally Erases First-Half Losses

AAVE is currently trading near $160 on Coinbase. September appears to be closing on an upbeat note for the token, up more than 28% m-o-m.

In Q3, the cryptocurrency has spiked almost 87%, paring all H1 losses.

Aave V4 Brings Tokenized Stock Collateral to Base

Crypto analysts highlight the recent launch of Aave V4 on Base with the new Equities Hub feature as a key development.

This tool allows investors to use tokenized stocks as collateral and borrow stablecoins against them.

At present, equity tokens available include major names like Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla.

Potential AAVE Token Burns: What Could Change?

Meanwhile, Aave’s founder said the protocol is considering adding an AAVE token burn mechanism to the existing buyback program.

As experts pointed out, the tokens are currently sent to a reserve rather than burned.

However, the switch to a burn model would create a strong deflationary effect.

AAVE Price Analysis: Resistance at $164.30 and $183

From a technical standpoint, the bulls are now targeting $183, where the next 38.2% Fibonacci retracement level lies.

To reach this mark, the bulls would need to break through local resistance at $164.3, where the 200-DMA currently lies.

Overall, market conditions have so far been favorable, with investors witnessing a V-shaped rebound.

However, it would be premature to talk about a breakout to the upside until AAVE pushes above $180-200.