Significant Aavenomics News: Could Buyback Suggestion Boost AAVE Value?
Aave aims for a $50M yearly coin buyback, exploring if “Aavenomics” can convert network earnings into price stabilization.
The Aave DAO is weighing a significant revision of its coin strategy that would incorporate buybacks as a consistent feature of its framework.
A new initiative introduced on Wednesday proposes implementing a $50M AAVE coin buyback annually financed by the protocol’s revenue.
The strategy proposed by the Aave Chan Initiative (ACI) entails buying between $250,000 and $1.75 million approximately every week.
TokenLogic alongside the Aave Finance Committee (AFC) would oversee these operations, with the total fluctuating based on crypto market conditions, available market fluidity, and revenue earned.
This would become an integral aspect of Aave’s functioning, giving buybacks a lasting role rather than the temporary initiative they are part of now.
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Can Aave’s $169M Annual Revenue Support a $50M Buyback?
The proposal indicates that the initiative would ensure a long-term repurchase of AAVE utilizing the revenue generated by the protocol.
The AFC would maintain flexibility, being able to adjust up to 75% of the weekly amounts based on available resources and trading market dynamics.
The subsequent step would be a Snapshot poll, followed by an on-chain vote to enact the policy if the poll is successful.
According to DeFiLlama data, the protocol has accumulated roughly $13.9M in the past month, translating to an annual rate of about $169M.
Such earnings would easily cover a $50M buyback even after addressing other operational costs.
Initial community responses have largely been favorable. Aave’s founder Stani Kulechov expressed base level for increasing the buyback target to $50 million annually.
At the time of reporting, AAVE was trading around $218, down nearly 5% for the day, with fluctuations between $215 and $231.
Crypto market responses remain varied, but the governance adjustment has highlighted whether regular buybacks could stabilize the token amidst wider fluctuations.
The initiative arrives just prior to the upcoming Aave v4 launch anticipated in late 2025.
This upgrade is set to unveil a “hub and spoke” framework designed to pool available volume more effectively and control risk across smaller market modules, a change that may influence the protocol’s income and, consequently, its capacity for buybacks.
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AAVE Price Forecast: Is AAVE Moving Toward the $135 “Magnet” Region Pointed Out by Analysts?
From a technical perspective, AAVE’s price chart reveals signs of stress. The coin is having difficulty maintaining essential support levels.
Analyst Ali Martinez identified $135 as a “magnet” for AAVE, suggesting that a fall below current values could lead to a more substantial pullback.
The crypto token has dropped below its mid-range price floor of $250, which had seen considerable buy interest earlier this year.
On a technical level, a pattern of lower highs and lower lows is now visible, signifying a short-term downturn.
The next price floor lies around $215, but analyst Ali Martinez’s indication of the $135 zone implies that a more significant correction could happen if crypto market sentiment continues to be weak.
This is a price point that has historically attracted strong market demand and is worth monitoring moving forward.
Resistance is found around $360, where previous rallies have faltered. A consistent breach above $250–$270 could reverse the trend and trigger a recovery.
However, momentum is feeble, and repeated failures to reclaim $270 indicate that buyers lack control.
Market fluidity is sparse, and traders are shifting towards BTC and Ether. Should AAVE fail to regain its prior price floor, a decline towards $135–$150 in the coming weeks remains a possibility.
The trend stays downtrend as long as prices remain under $250. Traders are observing closely to see if AAVE can establish a base here or slide into the lower demand area highlighted by Martinez.
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The article Major Aavenomics Update: Will Buyback Proposal Pump AAVE Price? first appeared on 99Bitcoins.
