AAVE, the native cryptocurrency of a decentralized lending protocol, Aave, recorded an 11.6% surge during Wednesday’s trading session. The bullish turnaround followed a broader market uptick as United States President Donald Trump granted a 90-day suspension period for over 75 countries, during which a reduced reciprocal tariff of 10% will apply.
In addition, AAVE DAO has approved a buyback governance proposal to initiate structured buybacks worth up to $1 million weekly. Will this change in Aavenomics boost its token price for a $200 breakout?
AAVE DAO Greenlights Buyback Proposal
April 9, 2025 — The Aave DAO has officially greenlit a proposal enabling the Aave Finance Committee (AFC) to conduct structured AAVE token buybacks, marking a significant milestone in the Aavenomics implementation roadmap. The proposal passed with an overwhelming support of 99.63% and will allow AFC to use $1 million weekly to repurchase AAVE from the open market.
According to the governance proposal, the initial $4 million in aEthUSDT has been approved for withdrawal from the Aave collector contract to fund one month of buybacks. Once the Aave Swapper contract is finalized, the program will scale to its target of $1 million per week over six months.
“This limited approval gives us time to finalize the Aave Swapper contract while enabling buybacks to start without delay,” the proposal explained.
AFC aims to sustainably increase AAVE acquisition from the open market and distribute it to the Ecosystem Reserve.
While the buyback initiative accentuates a boost to ecosystem reserve to further support development, its success could steadily reduce the available token supply and drive upward pressure on price.
AAVE Price To End 4-Month Correction with this Breakout
The second week of April witnessed a slight slowdown in sellers’ pressure as several countries approached Donald Trump to negotiate trade deals. Thus, the Bitcoin price held its ground above $80,000 while bolstering most major altcoins, including AAVE, to seek suitable support.
Thus, the coin price bounced from $114 to $141 in the last three days, registering a 23% surge. This upswing is just 4% away from challenging the resistance trendline of a falling wedge pattern in the daily chart.
Since December 2023, the two converging trendlines have been driving the current correction trendline in this asset. Thus, the potential breakout will signal a change in market dynamics and bolster a rally to $194, followed by $240.
Also Read: CryptoQuant Reports 7,500 Bitcoin Longs Liquidated in Record Sell-Off
