Aave’s governance token, AAVE, extended its weekly advance after its founder, Stani Kulechov, pushed back on claims that the protocol planned to sell tokens at a steep discount. At the time of writing, AAVE traded at $83.88, up nearly 16% over the past seven days, as investor focus shifted from speculation about potential token supply pressure toward details on buybacks and protocol revenue.
Kulechov’s comments followed media reports alleging that the cryptocurrency exchange Kraken was in talks to acquire a large stake in Aave at a significant discount. The founder said there was “no way” Aave would sell AAVE at a 70% discount, clarifying that any discussion related to an allocation of AAVE owned by Aave Labs rather than a token sale by the protocol itself.
Key takeaways
- Price move: AAVE rose to $83.88, up nearly 16% for the week.
- Catalyst: Founder Stani Kulechov denied a reported plan to sell tokens at a 70% discount.
- Value proposition: The founder confirmed work on Aavenomics 3.0, including an automated, non-discretionary buyback mechanism.
- Revenue direction: Kulechov said 100% of revenue from the Aave Protocol and the GHO stablecoin is directed to the AAVE token under the “Aave Will Win” framework.
- Implication for investors: The clarification reduced governance and supply concerns while increasing attention on how future protocol cash flows could support token value.
What drove the move
The rally gained momentum after Kulechov addressed a narrative circulating in the crypto community about potential discounted token supply. Reports had suggested Kraken was exploring a large acquisition in Aave at a major discount, a scenario that sparked debate around possible impacts for token holders and the protocol’s governance dynamics.
In his response, Kulechov rejected the premise that Aave would sell AAVE at a 70% discount. He said the discussions were instead tied to Aave Labs’ allocation of AAVE, not to tokens being sold by the protocol itself. He added that multiple market participants have been evaluating long-term strategic partnership structures involving that allocation, and that earlier reporting did not accurately reflect the substance of those talks.
By narrowing the issue to an ownership allocation rather than protocol-driven disposal, the founder’s clarification helped remove a key bearish variable from investor reasoning: the fear of an immediate or direct sell-off of AAVE at an extreme discount.
Buybacks and revenue mechanics in focus
Beyond disputing the discount-sale claims, Kulechov outlined additional token-economics details that are likely to matter to AAVE holders as the market weighs sustainability of demand and value accrual.
According to Kulechov, 100% of revenue generated by both the Aave Protocol and the GHO stablecoin is directed to the AAVE token under the “Aave Will Win” framework. He said the same revenue treatment applies to products including Aave App, Aave Pro, and Swaps.
Kulechov also stated that Aave Labs does not receive protocol or product revenue, despite serving as one of the primary development teams working on behalf of the Aave DAO. That distinction is relevant for investors because it speaks to where value is intended to flow within the ecosystem.
Among the headline items, Kulechov confirmed that the team is working on Aavenomics 3.0. The upgrade is expected to introduce an automated, non-discretionary buyback mechanism, a structural change that could increase the certainty of how treasury or revenue sources translate into token support. While no timing or implementation specifics were provided, the announcement marked another step in the protocol’s efforts to reinforce value accrual for AAVE holders.
Kulechov further said Aave is currently generating approximately $134 million in annualized revenue, with those proceeds flowing to the Aave DAO. He also reiterated that Aave’s intellectual property—including the Aave brand and related software—belongs to AAVE under the current governance structure.
Broader direction for the protocol
Kulechov said Aave is expanding beyond crypto-native lending and building products for broader financial markets, including real-world assets (RWAs). He also emphasized that the earlier governance concerns tied to the discount-sale reporting were clarified by his remarks.
Data points cited alongside the comments underscore Aave’s scale within decentralized finance. The platform is described as securing more than $12.24 billion in total value locked, reflecting its ongoing position among leading lending protocols in the sector.
What technical indicators suggest
Market participants also appear to be responding to improving short-term price signals. The report cited a mixed but improving technical setup: out of 23 tracked indicators, 11 suggested a buy, eight pointed to a sell, and four were neutral. Trend measures were described as the primary driver of the bullish tilt, with moving averages producing nine buy signals versus four sell signals.
The analysis noted that AAVE is trading above its 10-day, 20-day, and 50-day exponential moving averages, a pattern typically read as improving near-term momentum. However, the token remains below its 100-day and 200-day EMAs, suggesting the longer-term trend has not fully reversed. Oscillators were portrayed as more cautious, generating two buy signals compared with four sell signals.
Momentum readings were also highlighted. On the daily timeframe, the Relative Strength Index (RSI) was cited at 63.96, indicating positive momentum without being described as overbought. On the weekly timeframe, RSI was cited at 33.43, characterized as an oversold condition based on completed weekly candles.
Key levels mentioned in the technical outlook included support at $72.22; a break below it could expose the token to additional downside. On the upside, resistance was flagged at $88.41, with a daily close above that level potentially opening the path toward the next resistance at $90.13.
Traders will likely watch for follow-through in price action around the $88.41 resistance area and for continued confirmation of the buyback plans as Aavenomics 3.0 details progress. Near-term, investors in decentralized finance tokens may also look toward broader market catalysts—such as upcoming macro data releases and central bank signals—that can influence risk appetite and crypto liquidity—while monitoring further protocol updates from Aave and its governance process.
