DeFi platform Aave has initiated a $50 million annual token buyback plan to stabilize its token value amid recent price volatility. This decision follows a successful pilot in May, where over 94,000 AAVE tokens were repurchased for $22 million. The buyback will involve weekly purchases ranging from $250,000 to $1.75 million.
Despite a 50% price increase in May and reaching a peak of $385 in August, AAVE's price has dropped below $200 in the fourth quarter due to broader market downturns. The token's performance is closely linked to Ethereum's price movements, and recent data from CryptoQuant indicates an increase in exchange outflows, with 10,000 AAVE tokens being sent to exchanges weekly for selling.
Aave Launches $50M Annual Token Buyback to Stabilize AAVE Price
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