- Aave allocates $50 million annually for weekly buybacks, spending $1 million to repurchase AAVE from the market.
- Since April 9, Aave bought 10,014 AAVE worth $1.39 million, reflecting early execution of its supply-reduction plan.
Aave has introduced a weekly token buyback program that is already influencing market behavior. The protocol, which governs the AAVE token and its associated lending infrastructure, has committed to spending $1 million per week on buybacks. This initiative is part of a larger annual allocation of $50 million.
The mechanism went into effect on April 9. Since then, Aave has repurchased 10,014 AAVE tokens from the open market, representing roughly $1.39 million in value. The team has stated that this program is tied to recent changes in its fee structure and may scale further, depending on protocol revenue.
In the past 24 hours, AAVE posted a price increase of 1.11%, extending its weekly gain to 2.91%. These changes follow a broader 20% price decline over the last month. Market participants have begun to accumulate AAVE in response to the new buyback schedule.
Data shows that $13.98 million worth of AAVE has been traded over the last seven days. Of this, $4.3 million changed hands in the most recent 24-hour window. Notably, much of this volume represents spot market purchases that have since been moved into private wallets. This suggests a holding pattern, with investors opting to store tokens instead of seeking short-term rotation.
In parallel, a separate group of token holders has deposited their AAVE into the protocol as liquidity. This has helped raise Aave’s Total Value Locked (TVL) to $18.029 billion, its highest point since early April. A rising TVL indicates that capital is being committed to protocol functions such as lending, borrowing, or staking.
The weekly buyback strategy aligns supply-side activity with investor expectations. If buying continues at the current pace, the reduction in available circulating supply could create further upward pressure on price. However, much will depend on market conditions, sentiment, and whether the protocol can sustain revenue levels to support ongoing purchases.
Aave (AAVE) is currently trading at $141.93, showing a solid +2.52% daily gain, and building on a weekly increase of 4.00%. However, despite recent upside, AAVE remains significantly down 53.95% year-to-date and has lost 22.24% over the past month, indicating the asset is still in a broader bearish correction phase. Compared to its all-time high of $670, AAVE is currently down nearly 80%, though long-term holders still retain a 66.23% gain over the past year.
From a technical perspective, AAVE appears to be attempting a recovery from its recent low around the $130 zone, which has acted as a major support level. The next resistance levels to watch are around $150–$155, and a clean break above that region could potentially lead to a rally toward $165–$180.
If the price fails to hold above the $140 level, support remains at $132–$128, which has previously triggered rebounds. Indicators are shifting to neutral-bullish territory, but a sustained trend reversal hasn’t been confirmed yet.
Fundamentally, Aave continues to innovate within the DeFi space. The platform recently passed a buyback proposal among tokenholders, aiming to create value for AAVE holders and improve tokenomics.
Aave is also doubling down on its GHO stablecoin, which is central to its goal of 10x revenue growth. Additionally, the DAO’s “Horizon” initiative is focused on onboarding institutional capital through real-world assets, a growing narrative in 2025. These developments may serve as catalysts for long-term valuation recovery.
