The native token of the decentralized lending protocol Aave gained 12% in 24 hours, buoyed by a new governance proposal and increased investor inflows. The “Aave Will Win” framework proposes directing all protocol and product revenue to the DAO treasury, with projections between $118 million and $426 million annually. Meanwhile, the protocol’s Total Value Locked surged by $589 million, though a 23% drop in daily trading volume introduces a note of caution regarding the rally’s sustainability.
The Aave protocol has posted a solid performance recently, with capital inflows accelerating. Its native token, AAVE, gained 12% over the past 24 hours as momentum built across the broader market.
This rally follows the introduction of the sweeping “Aave Will Win” Framework ecosystem proposal. The proposal is designed to strengthen the protocol’s decentralized autonomous organization and improve long-term value capture.
Under the framework, Aave plans to redirect 100% of revenue from its products and protocol layer into the DAO treasury. Annualized revenue projections currently range between $118 million and $426 million.
Founder and CEO Stani Kulechov described the initiative as a strategic move. “Today, we’re proposing a new framework where Aave Labs becomes fully token-centric and redirects 100% of product-level revenue to the Aave DAO… formalizing alignment between Aave Labs and the DAO in service of token holders,” he stated.
On-chain data shows continued accumulation, with the Accumulation/Distribution indicator signaling sustained buying pressure. The Money Flow Index stood at 83, indicating strong liquidity entering the asset.
Investor capital commitment also surged, with more funds deposited directly into the protocol. Total Value Locked increased by $589 million, pushing Aave‘s total locked value to $27.797 billion, according to data.
Despite the price increase and liquidity surge, daily trading volume has declined. Data from CoinMarketCap shows that volume dropped 23% to approximately $368 million.
Such divergence between price and volume often signals weakening momentum. The market’s next move will depend on whether demand expands to support the current trajectory.
