AAVE Token Price Surges 16% on Tokenized Stocks and Burn Mechanism

The AAVE token price has surged by over 16% in recent days, pushing its value toward $166. This rapid increase is attributed to two major developments: the expansion of Aave's tokenized-equity lending market and renewed discussions around AAVE's tokenomics.

Aave V4 on Base has launched its Equities Hub, allowing eligible non-U.S. users to deposit seven Coinbase-issued tokenized U.S. stocks as collateral and borrow USDC against them. The initial lineup includes Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla stock tokens, which are collateral-only at launch.

The potential burn mechanism has also sparked a new discussion around Aavenomics 3.0. Stani Kulechov, the founder of Aave, said that the protocol is considering adding AAVE burns to its existing buyback program. This would mark a shift from simply repurchasing AAVE with protocol revenue toward permanently removing some tokens from circulation.

The chart shows a clear rounded-base breakout after months of accumulation, with AAVE moving above the major moving-average cluster. The immediate resistance sits around $168-$175, and a clean move above this zone would open the path toward $180-$185, followed by the larger $195-$205 supply zone.

With momentum strong but also vulnerable to short-term profit-taking, the next phase for AAVE depends on whether it can hold the breakout area and absorb overhead supply as the rally approaches its next major resistance.