Aave Buyback Plan Buys 50,000 AAVE, Posts $3M Unrealized Profit and Continues Weekly $1M Purchases
DeFi protocol Aave has executed a buyback of 50,000 AAVE tokens over the past two months under its community-managed $1 million weekly buyback plan. The protocol spent $10 million at an average price of $199.74 and holds the tokens at today’s price of $264, reflecting an unrealized profit of about $3 million. The program is set to run for six months, targeting roughly $50 million in annual buybacks and may expand with revenue growth. Throughout the buyback process, Aave DAO’s treasury has remained above $100 million, underscoring financial stability. The aggressive Aave buyback strategy aims to reduce token supply, bolster investor confidence, and strengthen long-term tokenomics.
Bullish
Aave’s ongoing buyback plan reduces circulating supply and demonstrates strong treasury health—key drivers for bullish market sentiment. The unrealized $3 million profit highlights program efficiency, while the commitment to $1 million weekly purchases for six months signals sustained demand. Similar initiatives, such as BNB burns and MakerDAO surplus auctions, have historically supported price appreciation. In the short term, steady buybacks should provide price support and reduce volatility. Over the long term, a lower token supply and solid capital runway enhance tokenomics, likely attracting institutional and retail interest. Together, these factors create a favorable outlook for AAVE price performance.