AAVE Eyes $200 After Billion-Dollar Volume Jump

TLDR

• AAVE traded near 185–186, gaining about 13% in 24 hours.
• Futures volume reached about $1.09 billion, while open interest hit $535 million.
• Aave V4 crossed $1 billion in deposits during September and expanded to Arc and Base.
• The DAO maintains a $50 million annual buyback budget, while a token burn remains only under discussion.
• Shorts accounted for about $3.26 million of $3.82 million in liquidations, with $190 and $200 now key levels.

Aave entered October with a sharp rise in trading activity as AAVE approached $190. The token traded near 185–186 on Oct. 2 after gaining about 13% in 24 hours and more than 26% over seven days. Futures volume reached roughly $1.09 billion.

Aave V4 Growth Supports Market Activity

Aave Labs reported that V4 passed $1 billion in deposits during September. The protocol also expanded to Arc and Base, widening access across new markets. That growth gives traders a fundamental development to track alongside the recent price increase across lending markets.

The Base deployment added an Equities Hub for tokenized stocks. Eligible users can use tokenized Coinbase equities as collateral for USDC loans. This feature connects Aave lending with a growing market for onchain versions of traditional assets.

Buybacks Add Another Supply Factor

Aave DAO also continues its token buyback program with a $50 million annual budget. Weekly purchases can range from $250,000 to $1.75 million, depending on market conditions. These purchases reduce circulating supply available to sellers during periods of stronger demand.

Recent discussion about a possible burn mechanism has added another supply-related factor. No formal burn proposal or schedule exists. Separately, Base activated its Cobalt upgrade on Sept. 30, adding new transaction controls and asset management features to the network.

Short Liquidations Accelerate AAVE Rally

Derivatives data points to pressure on bearish positions. AAVE recorded about $3.82 million in liquidations over 24 hours, with shorts accounting for around $3.26 million. Rising prices forced some short sellers to close positions, adding buying pressure during the advance.

Open interest also climbed to about $535 million as futures activity increased. Higher open interest shows that more capital entered active derivatives positions. The combination of rising price, volume, and short liquidations helped strengthen the latest move toward the $190 level.

Price Approaches Key Resistance

AAVE has moved well above its major daily moving averages after recovering from about $120 in September. Trading volume rose with the breakout, while the RSI moved closer to overbought territory. Broader interest in tokenized equity markets remains part of the market backdrop.

The token has gained more than 100% over 90 days. The next immediate level sits near $190, followed by $200 if buying continues. On the downside, traders are watching 170–175 as the former breakout area while Aave tests whether demand holds.

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