Aave Launches Weekly Buyback Program, Boosting Accumulation and Market Optimism

Aave has rolled out a new initiative to repurchase AAVE tokens from the market weekly, allocating $1 million per week from a $50 million annual budget. This move is aimed at reducing circulating supply and potentially driving upward price momentum.

The announcement has been met with enthusiasm from investors, triggering a noticeable wave of accumulation. In the past 24 hours, AAVE rose by 1.11%, contributing to a 2.91% gain over the past week. This modest yet positive price action aligns with growing confidence following the protocol’s new buyback strategy.

As of press time, a total of 10,014 AAVE—worth approximately $1.39 million—has been repurchased under the initiative, according to data from TokenLogic. The buyback pool may increase depending on Aave’s protocol revenue, further tightening supply and reinforcing investor sentiment.

Market activity confirms this momentum. Over $13.98 million worth of AAVE has changed hands in the past week, with $4.3 million traded in the last 24 hours alone. Much of this accumulation is headed into private wallets, suggesting a long-term outlook among holders.

Technical analysis shows AAVE consolidating within a symmetrical triangle pattern on the 4-hour chart. A breakout above resistance could signal the start of a rally, with price targets between $170 and $187—or potentially up to $200 if momentum strengthens.

Beyond accumulation, liquidity has also seen a boost. Many investors are depositing AAVE into the protocol to become liquidity providers. As a result, Aave’s Total Value Locked (TVL) has climbed to $18.03 billion, its highest level since early April. This rise in TVL reflects growing trust and deeper engagement with the protocol.

Recent developments like competitive yields on EUR and a potential deployment on Aptos highlight Aave’s continued efforts to expand utility and attract liquidity.