$AAVE expanded its weekly gains after Aave founder Stani Kulechov dismissed claims that the decentralized finance protocol planned to sell tokens at a steep discount, while also confirming that a new automated buyback mechanism is in development.
The token was trading at $83.88 at the time of writing, up nearly 16% in the past seven days.
Kulechov’s latest comments came after reports suggested that cryptocurrency exchange Kraken was in talks to acquire a major stake in Aave at a significant discount.
These reports sparked discussion within the crypto community about the potential impact on token holders and governance.
But Kulechov dismissed the claims, saying there was “no possibility” Aave would sell $AAVE with 70% discount.
He explained that discussions focused on an allocation of $AAVE owned by Aave Labs, and not tokens sold by the protocol itself.
According to Kulechov, multiple market participants have explored long-term strategic partnerships that include this allocation, and the previous reports did not accurately reflect these discussions.
Aave buybacks and protocol revenue take center stage
In addition to addressing the speculations, Kulechov provided new details about Aave’s token economy.
He said that 100% of the revenue generated by both the Aave Protocol and the GHO stablecoin will go to the $AAVE token under the “Aave Will Win” framework.
The same approach also applies to the revenue generated by products such as Aave App, Aave Pro and Swaps.
Kulechov added that Aave Labs receives no protocol or product revenue, despite being one of the key development teams building the protocol on behalf of the Aave DAO.
One of the biggest announcements was the confirmation that the team is working on Aavenomics 3.0.
According to Kulechov, the upgrade will introduce an automated, non-discretionary buyback mechanism.
While no launch date or implementation details were announced, the announcement marked another step in the protocol’s ongoing efforts to strengthen value building for businesses. $AAVE holders.
He also revealed that Aave currently generates approximately $134 million in annualized revenue, with proceeds flowing to the Aave DAO.
In addition, Kulechov said that the intellectual property of the protocol, including the Aave brand and the software developed for the ecosystem, belongs to $AAVE under the existing management structure.
The founder also reiterated that Aave is going beyond crypto-native lending and building products for the broader financial market, including real-world assets (RWAs).
The clarification helped address concerns created by the previous reports and coincided with renewed buying interest in the token.
In addition to the governance updates, Aave remains one of the largest decentralized finance protocols.
The platform has currently secured a total value of over $12.24 billion, underscoring its position as one of the leading credit markets in the industry.
$AAVE price prediction
$AAVEThe country’s recent rally has improved the near-term technical outlook, although several resistance levels remain on focus.
Technical indicators are currently showing a mixed but improving picture.
Of the 23 indicators tracked, 11 point to a buy, eight point to a sell, while four remain neutral.
The bullish bias is mainly caused by trend indicators, with moving averages producing nine buy signals versus four sell signals.
$AAVE is trading above its 10-day, 20-day and 50-day exponential moving averages (EMAs), indicating improving short-term momentum.
However, the token remains below the 100 and 200 day exponential moving averages, showing that the longer-term trend has not yet completely reversed.
Oscillators remain more cautious, generating only two buy signals compared to four sell signals.
In particular, the daily Relative Strength Index (RSI) stands at 63.96, indicating that momentum remains positive without entering overbought territory.
However, on the weekly time frame, the RSI is at 33.43, a level that reflects an oversold condition based on completed weekly candles.
Looking at the key price levels to watch, the immediate support level is at $72.22. A break below that level could expose this $AAVE to extra downward pressure.
On the upside, traders will want to look at $88.41, which represents the first major resistance. A daily close above that level could pave the way for a move towards the next resistance at $90.13.