Aave starts a 50 million USD acquisition program – Implications and potential impact on price

Aave ( AAVE ) has recorded a slight increase of 1.11% over the past 24 hours, slightly higher than the 2.91% increase over the entire week.

The short-term price increase momentum appeared immediately after the platform implemented the token buyback mechanism - a strategic move that could help strengthen the market value of AAVE.

This move has received a positive response from the investor community, as evidenced by the increased buying power. However, the question arises as to whether the current recovery is strong enough to offset the nearly 20% drop over the past month.

What does it mean to buy back tokens with AAVE?

The Aave development team has just announced the implementation of a token buyback program with an annual budget of up to 50 million USD, equivalent to 1 million USD being spent each week to purchase from the market.

This move not only reflects adjustments in the fee collection mechanism but is also expected to serve as a catalyst for the growth of AAVE's price. From April 9 until the announcement, the program has repurchased a total of 10,014 AAVE, worth approximately 1.39 million USD.

Source: TokenLogicNotably, the scale of the buyback fund can be fully expanded in the future, depending on the revenue of the protocol in the current cycle. This strategy is designed to achieve two core objectives: to reinforce investor confidence and to create supply pressure in the market.

With such factors, the market quickly reacted. Buying force rapidly increased, indicating growing expectations for AAVE to enter a new bullish cycle.

Accumulated volume in the market surges

Accumulation activity in the AAVE market is occurring strongly, showing clear signals of the potential for a price breakout in the near future.

In just the past week, the trading volume reached 13.98 million USD — specifically in the last 24 hours, this figure was 4.30 million USD, indicating an increasing level of interest from investors.

Notably, the majority of AAVE tokens purchased from the spot market are being withdrawn to personal wallets for long-term holding, reflecting strong confidence in the price appreciation potential of this asset.

Observing the 4-hour chart clearly shows accumulation behavior as the price continues to oscillate within a symmetrical triangle pattern — a technical structure that often signals preparation for strong volatility.

Source: TradingView If AAVE can break above the resistance line of the pattern, this could be the start of a new bullish trend. In this positive scenario, the potential target area is identified in the range of $170–$187.

Not stopping there, if the growth momentum continues to be maintained, the possibility of AAVE returning to the $200 mark is completely within reach.

Liquidity growth is still at a high level

The market's reaction is not limited to accumulating AAVE in personal wallets. A portion of investors has actively put assets into the protocol, becoming liquidity providers – a move that indicates a higher level of commitment to the ecosystem.

Source: DeFiLlamaA strong inflow of capital has pushed the Total Value Locked (TVL) up to 18.029 billion USD – the highest level since the beginning of April. The increase in TVL not only reflects strong investor confidence but also indicates a growing commitment to the platform, both of which are important drivers of the upward trend.

Recently, Aave has also launched a series of initiatives aimed at expanding liquidity sources. Most notably is the provision of competitive yields for EUR-denominated assets, along with plans to expand into the Aptos network – two strategies that have the potential to drive strong growth in the near future.

View AAVE price here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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