AAVE Rises 4.85% Following $50M Buyback and $35B TVL: Will Chainlink ACE Prevent Further Decline?

As of NOV 5 2025,

climbed 4.85% over the past day, reaching $197.15. Over the last week, AAVE declined by 13.66%, mirrored by a 13.66% drop over the past month, and a 36.13% decrease over the previous year.

AAVE’s protocol continues to exhibit a strong and steady financial framework, generating $98.3 million in fees and $12.6 million in revenue in the last month alone. The platform’s Total Value Locked (TVL) remains at $35 billion, highlighting its status as one of the most liquid and reliable protocols in the DeFi space. These solid fundamentals bolster the ecosystem’s outlook, particularly as the Aave DAO has introduced a $50 million annual token buyback initiative, fully funded by protocol earnings.

This buyback initiative highlights the DAO’s dedication to enhancing token holder value, aiming to decrease circulating supply and promote long-term growth. The program is viewed as a strategic move to address recent price swings and to instill greater confidence during uncertain market conditions. Experts believe this approach could help steady AAVE’s price by reducing selling activity and encouraging a more optimistic outlook among investors.

From a technical perspective, indicators point to a possible support zone for AAVE between $150 and $160, which aligns with a significant upward trendline established since 2023. Should this support hold, a rebound could propel AAVE toward $240, with additional gains potentially reaching $341 in the short term. Surpassing $341 might spark a rally toward the $446–$538 range before the year concludes. This technical scenario, together with sustained institutional interest—especially via Chainlink’s ACE integration—strengthens the overall bullish narrative for AAVE.

Backtest Hypothesis

The coordinated financial and technical strengths of Aave present a strong argument for implementing a systematic backtesting approach using historical price data. Leveraging the file aave_price_20220101_20251105.json, one can evaluate a long-term strategy based on crucial technical thresholds and the anticipated support from the buyback program. For optimal results, the backtest should specify clear entry points within the $150–$160 support band and set a stop-loss at $130 to limit downside exposure. Since the backtesting tool currently cannot access real-time prices for “AAVEUSD.UDC,” the best course is to utilize the available historical dataset. This ensures a comprehensive and reliable simulation of Aave’s price movements without depending on potentially inconsistent or unavailable external data sources. A positive backtest outcome could provide empirical support for the bullish thesis and lay the groundwork for more sophisticated trading strategies.