The Aave protocol’s monthly token buybacks have exceeded $6 million, signaling a new level of protocol-driven demand. This fundamental strength coincides with the AAVE price testing a crucial support zone between $105 and $120 after a significant correction. Analysts note that a successful defense of this level could be key for a potential market recovery.
The Aave decentralized finance protocol is attracting attention as its monthly buyback activity reaches new highs. DeFi Andree pointed out that buybacks have moved beyond $6 million, a step up from the $3 million to $4.5 million range seen for much of the previous year.
Andree stated that these buybacks, funded by protocol revenue, “represent the protocol for making real money from usage” and can help establish a price floor. This fundamental activity is occurring as the AAVE token’s price tests a major historical support area.
On the weekly chart, AAVE is now entering a large demand zone between $105 and $120. This area previously acted as resistance before becoming support during a late 2024 breakout, and market participants often watch such zones for potential buying activity.
Trader Michaël van de Poppe noted that AAVE has broken out from its recent region, calling the move “well-deserved” given the protocol’s established foundation. The price had seen a deep correction after reaching near $400 in early 2025.
A weekly close below the $105 support level could lead to a test of a lower zone around $70 to $80. The relative strength index has retreated from overbought territory, indicating a reset in market momentum.
