Aave [AAVE] registers a 1.11% uptick, trailing slightly behind its 2.91% gain for the week.

This 24-hour growth follows Aave's recent implementation of a token buyback system, which could drive the asset into a rally.

Aave [AAVE] registered a 1.11% uptick over the past 24 hours, trailing slightly behind its 2.91% gain for the week. This 24-hour growth follows Aave’s recent implementation of a token buyback system, which could drive the asset into a rally.

This development has seen market participants respond by accumulating the token. However, will this be enough to undo its 20% drawdown from the past month?

What does the buyback mean for AAVE?

The Aave team has set aside an annual budget of $50 million to buy back AAVE from the market, with a weekly spend of $1 million to achieve this goal.

This new initiative reflects a change in the fee structure and is expected to act as a catalyst for price growth.

Between the 9th of April and press time, 10,014 AAVE worth $1.39 million had been purchased from the market under this initiative.

Source: TokenLogic

Furthermore, the buyback pool may expand, depending on protocol revenue during this cycle.

This approach, by design, is meant to do two things — instill confidence in the minds of investors and potentially trigger a supply squeeze.

Having said that, the market didn’t take long to respond.

There has been an accumulation of the token, which hints at expectations of a rally.

A massive amount of AAVE is being accumulated

There’s been growing accumulation in the market, which could lead to a price breakout.

Over the past week, $13.98 million worth of AAVE changed hands — $4.30 million of that in the last 24 hours alone.

This accumulation is noteworthy, as these AAVE tokens purchased from the spot market are being held for long-term commitment and moved into private wallets.

Source: TradingView

The 4-hour chart provides better insight, confirming that investors are accumulating the asset as it trades within a symmetrical triangle pattern made of converging support and resistance levels, with price oscillating within it.

Finally, a breach of the upper resistance line would imply the start of a price rally. If a breakout occurs, the price target lies between $170 and $187.

Also, stronger market momentum could push the asset back to the $200 region.

Liquidity growth remains high

The market reaction isn’t limited to accumulation and storage in private wallets. A cohort of investors has moved their AAVE into the protocol, becoming liquidity providers.

Source: DeFiLlama

This influx has propelled the Total Value Locked (TVL) to $18.029 billion — its highest since early April. A growing TVL often implies increasing confidence and deeper market roots — both of which support price continuation.

In recent weeks, Aave has focused on several developments aimed at attracting liquidity. Two of the most notable are competitive yields on EUR and the potential launch on Aptos.