AAVE rallied on Tuesday after Aave founder Stani Kulechov hinted that the next iteration of Aavenomics could include a token burn mechanism, adding a deflationary element to the lending protocol’s existing buyback program. The token was up about 4.65% as demand returned following a bearish start to the week.
AAVE jumped as high as $176, erasing a decline of more than 7% between Sunday and Monday. The move kept AAVE on track for a fourth consecutive monthly gain, with the token up more than 38% in September, although price-RSI divergence remained a caution signal near the $180 resistance zone.
Kulechov linked the protocol’s broader expansion into tokenized securities and real-world assets to its long-term value strategy. Aave already allows users to borrow USDC against tokenized equities; holders of tokenized shares in companies such as Nvidia and Apple can retain ownership while using those assets as collateral on Aave V4. He said tokenized stocks on Aave were off to a healthy first week, and noted that much of the borrowing took place over the weekend, when traditional markets are closed.
According to Llama Risk data, 34 addresses borrowed approximately 22,000 USDC from Friday evening to Sunday evening. While that volume is modest, it serves as an early proof of concept for weekend crypto-native borrowing against tokenized stocks.
Aave’s active loans on V4 have grown sharply, closing in on $400 million on Monday after sitting near $2 million just six months ago. The protocol’s longer-term plans include moving beyond crypto and securities into yield-generating infrastructure such as GPUs, energy, and compute, but for AAVE holders the key question remains whether the proposed burn model will be formally adopted and how buybacks and burns will affect token supply over time.
