Aave DAO buyback strategy nets $2.6 million in unrealized profits

Aave DAO has repurchased 70,000 AAVE tokens, or 0.5% of its total supply, in less than six months of its token buyback initiative.

In an Aug. 4 post on X, DeFi analysis platform Token Logic stated that the platform acquired these tokens for $15.7 million at an average purchase price of $223.33 per token.

The platform also stated that the DeFi protocol has an unrealized profit of $2.6 million based on the current market price of the AAVE token.

Mark Zeller, the co-founder of Aavechan, confirmed the milestone in a separate X post, pointing out that the DAO also reduced emissions by 50%, thereby increasing the appeal of AAVE and the platform.

Meanwhile, the repurchase program remains ongoing, with the DAO investing approximately $1 million weekly into buying back AAVE tokens.

Aave strengthens DeFi growth

The buyback initiative aligns with Aave’s broader growth strategy of cementing its status in the DeFi sector.

Last month, the protocol surpassed $50 billion in net deposits, positioning it among the top 50 banks in the US.

The protocol also accounts for around 25% of the total DeFi market, considering the total value of assets locked on the platform is around $33 billion as of press time, according to DeFiLlama data.

Moreover, Seb Pulido, Director of Institutional & DeFi Business at Aave Labs, highlighted the extent of Aave’s market dominance by pointing out that around 60% of Bitcoin users in DeFi use Aave to gain access to dollar-denominated assets.

This commanding position has significantly bolstered Aave’s financial position.

Crypto platform Blocmates noted that Aave generated $86 million in 2024, a 280% increase year-over-year.

However, the platform is poised to surpass that figure this year as its annualized revenue stands at approximately $100 million as of mid-2025.

Looking forward, Blocmate predicted that Aave’s annual recurring revenue (ARR) could exceed $150 million by year-end.

This growth is expected to be driven by the protocol’s upcoming projects, including Aave V4, the full deployment of Chainlink’s SVR, and increased regulatory clarity in the US.

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