AAVE Surges 13%: Protocol Revenue Overhaul and Buyback Plans Fuel $100 Target

AAVE posted a sharp 13% gain within a single 24-hour window, driven by renewed investor confidence following key statements about the protocol's tokenomics and long-term direction.

Trading volume surged past $546.6 million during the rally, while the token's total market capitalization climbed to $1.44 billion — a clear sign of broad market participation and growing interest in the asset.

The catalyst behind the price jump was a public statement from Aave founder Stani Kulechov, who firmly denied circulating rumors that Aave Labs planned to offload AAVE tokens at heavily discounted rates. Kulechov used the opportunity to reinforce a key aspect of the protocol's value proposition: all revenue generated by both Aave Protocol and the GHO stablecoin flows directly to AAVE token holders. He also disclosed that the protocol currently produces roughly $134 million in annualized revenue for the Aave DAO — a figure that underscores the platform's financial health.

Perhaps the most significant announcement was the confirmation that Aavenomics 3.0 is actively in development. The upcoming upgrade is set to introduce an automated token buyback mechanism, a feature that could meaningfully reduce circulating supply over time and add structural support to the token's price.

Exchange Reserves Rise, Yet Demand Holds Firm

Despite the bullish momentum, on-chain data revealed a simultaneous 16.97% increase in Exchange Reserve USD, which reached $229.49 million. This uptick signals that a notable volume of AAVE tokens was moved into exchange wallets — a pattern that typically raises the potential for profit-taking following a strong price move.

However, the market absorbed this additional sell-side supply without giving back the recent gains. Demand remained robust enough to counteract the expanded exchange liquidity, suggesting that bullish conviction among buyers outweighed short-term selling interest. Analysts note that if exchange inflows continue to rise, it will be worth watching whether buying pressure can keep pace, as sustained token accumulation on exchanges could eventually create headwinds.

Technical Picture Points Toward $100 Resistance

From a chart perspective, AAVE staged a meaningful recovery from its June low near $60, reclaiming the critical $90 support zone before pressing toward the $100 supply region. The daily timeframe now displays a sequence of higher lows — a technical pattern that reflects a genuine shift in market structure following weeks of bearish price action.

The Relative Strength Index (RSI) advanced to 69.22, sitting just beneath overbought territory. This reading confirms that buying momentum has been building steadily and has not yet reached exhaustion levels.

The $100 price level stands as the most consequential resistance on the chart. Previous recovery attempts earlier in the year were rejected at this zone, making it the defining hurdle for the current uptrend. A confirmed break above $100 would open the door to the next resistance area near $115. Conversely, another rejection at this level could trigger a period of short-term consolidation before a fresh breakout attempt materializes.

Liquidity Map Supports Continued Advance

The Liquidation Heatmap further reinforces the bullish case. The densest cluster of liquidity sits around the $90 zone — closely aligned with AAVE's current trading range. So long as buyers successfully defend this level, the surrounding liquidity infrastructure provides a solid base for another push toward the heavier liquidation pools concentrated between $95 and $100.

These overhead liquidity zones represent the next logical price target and correspond directly with the daily supply area identified on the chart. A sustained absorption of selling pressure in this region would set the stage for a run toward $100 and a potential breakout above it. A loss of the $90 floor, however, would undermine the current bullish structure and likely postpone any meaningful upside move.

Key Takeaway

AAVE is navigating an important technical juncture. Elevated exchange reserves have expanded available sell-side supply, yet buyers have consistently stepped up to defend the $90 support zone. With strong protocol fundamentals, confirmed revenue figures, and a new tokenomics upgrade on the horizon, the $100 breakout level remains the central focus for traders and investors tracking this asset.