Key Highlights
- AAVE price surged 16.1%, reaching $169.58, with its weekly gains rising to 18.1% and monthly gains above 30%.
- Aave launched its Equities Hub, allowing eligible non-U.S. users to use tokenized Apple, Amazon, Nvidia, Tesla and other major stocks as collateral to borrow USDC.
- Aave is considering an AAVE burn, which could remove some tokens from circulation as part of its existing buyback program.
AAVE price surged 16.1% on Tuesday following recent development surrounding the token. According to data from CoinGecko as at 5:31 p.m. UTC on September 29, the token is currently trading for $169.58, after climbing to a daily low around $145.
This jump has placed its market capitalization to approximately $2.62 billion in value, with its trading activity recording around $713.79 million within the same 24 hours. In fact, this adds to its weekly surge which has now reached 18.1% in seven days and over 30% in a month.
Aave’s latest developments
The major new development is Aave’s Equities Hub, launched through Aave V4 on Base. As reported earlier, the new feature allows eligible users outside the United States to use tokenized versions of major U.S. stocks as collateral to borrow USDC.
This means users can get access to dollar-based liquidity without having to sell their stock tokens.
Seven tokenized stocks join the market
The first seven tokenized stocks available are Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla. These assets can currently only be used as collateral. USDC is the only asset users can borrow through the new market.
The tokenized stocks are issued by Coinbase, while Chainlink provides the pricing data used by the lending market. LlamaRisk also completed the risk assessment for the new market, while Aave Labs deployed the V4 version for Aave DAO.
However, the service is not open to U.S. users. It is available to eligible users outside the country because the Coinbase tokenized stocks are offered under Regulation S. Aave said more tokenized stocks could be added later, while GHO, Aave’s stablecoin, could also become available as a borrowing option after further governance and risk checks.
This new lending market gives Aave another use case as it connects traditional stocks with decentralized finance. Instead of selling a tokenized stock to get cash, eligible users can use the stock as collateral and borrow USDC against it.
Aave considers burning more tokens
At the same time, Aave founder Stani Kulechov in a post on X on September 28, said the protocol is considering adding an AAVE burn to its existing buyback program.
Aave already uses part of its protocol revenue to buy back AAVE tokens. According to its documentation, Aave’s current framework has a $50 million yearly budget, with weekly purchases ranging from $250,000 to $1.75 million depending on market conditions. However, the tokens bought through the program are currently sent to the DAO Ecosystem Reserve instead of being permanently removed from circulation.
A possible burn would change that process by removing some of the bought tokens from circulation. The idea is part of the wider Aavenomics 3.0 discussion and has brought more attention to the way Aave manages its native token.
AAVE breaks out from its old range
The price chart also shows how quickly AAVE has changed direction. According to the current price action on TradingView as at 5:31 p.m. UTC on September 29, the token spent much of July and August trading between about $83 and $103 before breaking above the $145 range in September.
This break was followed by bullish momentum, which helped AAVE climb toward $166.
However, price is currently at a resistance level around 168–175. According to the price action on TradingView, If AAVE moves above that range, it could push price back up to 180–185 and then towards the next major resistance level at $326.
On the downside, if the price fails to hold the resistance level, it could drop back down to the support zone. Meanwhile, the Relative Strength Index (RSI) is currently at 64.06, which means the price is not yet at overbought level.
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